Whenever a Defined-Benefit Plan Is Amended and Credit Is Given

question 28

Multiple Choice

Whenever a defined-benefit plan is amended and credit is given to employees for years of service provided before the date of amendment

• A)both the accumulated benefit obligation and the defined benefit obligation are usually greater than before.
• B)both the accumulated benefit obligation and the defined benefit obligation are usually less than before.
• C)the expense and the liability should be recognized at the time the benefits are paid.
• D)the expense should be recognized immediately, but the liability may be deferred until a reasonable basis for its determination has been identified.

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Definitions:

Consignor

An entity or person that sends goods to another, the consignee, who agrees to sell those goods on behalf of the consignor.