Which of the Following Is Not a Step in Reporting

question 30

Multiple Choice

Which of the following is not a step in reporting a pension liability?

• A) The pension benefit payments that will ultimately be required are estimated by an actuary.
• B) The portion of those payments that are attributable to past periods of employee service is calculated.
• C) The present value of amounts attributable to past periods of employee service is determined in order to arrive at the government's obligation at the present time.
• D) Excess liability balance is shown in the government-wide financial statements as a net pension asset.
• E) Excess liability balance is shown in the government-wide financial statements as a net pension liability.

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Definitions:

Coagulation

The process by which blood changes from a liquid to a gel, forming a blood clot.

Microorganisms

Tiny living organisms, such as bacteria, viruses, fungi, and protozoa, that can only be seen under a microscope.

Muslin

A lightweight, breathable cotton fabric used for making clothes, curtains, and other items.