Which of the Following Calculations Is Used to Determine the Amount

question 35

Multiple Choice

Which of the following calculations is used to determine the amount of the liability reported on the balance sheet for underfunding?

• A) Plan assets less projected benefit obligation.
• B) Projected benefit obligation less plan assets.
• C) Plan assets less accumulated benefit obligation.
• D) Accumulated benefit obligation less plan assets.

---

Definitions:

External Locus

Refers to a belief that outcomes in one's life are due to external forces and circumstances beyond individual control.

Internal Locus

The belief that one has control over their own life and outcomes, rather than external forces having that control.

Control

The power to influence or direct people's behavior or the course of events.

Implicit Assumption

An unstated belief or premise that influences attitudes, actions, and decisions without explicit acknowledgment.