The Schedule of Changes in Long-Term Obligations Contains an Account

question 57

Multiple Choice

The schedule of changes in long-term obligations contains an account "net pension obligation." Which of the following describes the event that gave rise to this account?

• A) The actual contribution by a proprietary fund was less than the annual required contribution per the actuary.
• B) The actual contribution by a governmental fund was less than the annual required contribution per the actuary.
• C) The actuarially computed pension liability exceeded the pension plan assets.
• D) The actuarially computed pension liability was less than the pension plan assets.

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Definitions:

Cross-Cutting Relations

A geological principle stating that any geologic feature that cuts across another feature must be younger than the feature it cuts.

Inclusions

Pieces of one rock unit that are enclosed within another rock unit, often used in geology to determine the relative age of rock layers.

Original Horizontality

A principle stating that sedimentary rocks are deposited in horizontal or nearly horizontal layers under the action of gravity.

Superposition

A principle that states in an undisturbed sequence of rocks, layers of rock were deposited in order from bottom to top according to their age, with the oldest at the bottom and the youngest at the top.