GASB Standards Require a Defined Benefit Pension Plan to Report

question 73

True/False

GASB standards require a defined benefit pension plan to report investments at fair market value even if the plan's actuary uses a different value in determining the employer's contribution requirements.

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Definitions:

Principal Repayment

The process of paying back the original amount borrowed from a lender, excluding interests.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest obligations from its operating income.

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be repaid at a future date.

Tax Rate

The percentage at which an individual or corporation is taxed.