What Is True of the Interest Cost Component of the Pension

question 8

Multiple Choice

What is true of the interest cost component of the pension expense?

• A)ASPE specifies that enterprises should use the yields on high-quality corporate bonds.
• B)IFRS specifies that enterprises should use the yields on high-quality short-term corporate bonds.
• C)It represents the increase in the pension obligation due to the passage of time.
• D)IFRS specifies that enterprises should use the yields on medium-quality corporate bonds.

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Definitions:

Genes

Units of heredity made up of DNA that are responsible for determining the characteristics and traits of organisms.

Narcissism

A psychological condition characterized by self-centeredness, a high need for admiration, and a lack of empathy for others.

Empathy

The capacity to understand and share the feelings or emotional states of another individual.

Materialism

The belief or attitude that physical possessions and wealth are of the highest importance in life.