FASB ASC Topic 715 Requires That the Notes Accompanying the Financial

question 60

Multiple Choice

FASB ASC Topic 715 requires that the notes accompanying the financial statements include a schedule reconciling the

• A) funded status of the plan with amounts reported in the balance sheet.
• B) current period employer contributions with pension expense reported in the income statement.
• C) projected benefit obligation and the accumulated benefit obligation.
• D) actual return on plan assets with the expected return.

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Definitions:

Compounded Annually

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Lump Sum Payment

A single payment made at a particular time, as opposed to several smaller payments or installments.

Compounded Annually

A method of calculating interest where the interest earned over a period is added to the principal, and the total becomes the base for the calculation of the next period's interest.

Lump Sum Payment

A payment made in a single lump sum amount, often used in the context of paying off debts or settling transactions.