An Effective Revocation

question 559

Multiple Choice

An effective revocation:

• A) must be communicated to the offeree before acceptance
• B) must be communicated to the offeree after acceptance
• C) need not be communicated to the offeree before acceptance
• D) must be filed through a court
• E) must be initiated by the offeree

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Definitions:

Actuarial Gains and Losses

Gains or losses that arise from the adjustment of assumptions or the application of actuarial models differently over time in evaluating a company's pension liabilities.

Projected Benefit Obligation

Represents an estimate of the total amount to be paid to participants in a defined benefit pension plan, based on employees' service and salary history.

Prior Service Cost

The cost associated with retroactive benefits granted in a pension plan amendment, recognized over the service lives of affected employees.

Plan Assets

Assets that are specifically earmarked to pay pension benefits, typically held in a pension fund.