The Interest Rate Used on the Defined Benefit Obligation Component

question 10

Multiple Choice

The interest rate used on the defined benefit obligation component of pension expense

• A)reflects the incremental borrowing rate of the employer.
• B)reflects the rates at which pension benefits could be effectively settled.
• C)is the same rate used to compute the interest revenue on plan assets.
• D)may be stated implicitly or explicitly when reported.

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