Which of the Following Statements Is Correct

question 4

Multiple Choice

Which of the following statements is correct?

• A) Minimum (corridor)amortization of net unrecognized gain or loss is not allowed for postretirement benefit plans.
• B) Immediate recognition of gains and losses is allowed for postretirement benefit plans but not for pension plans.
• C) Immediate recognition of gains and losses is allowed for pension plans but not for postretirement benefit plans.
• D) Minimum (corridor)amortization of net unrecognized gain or loss is the only amortization method allowed for postretirement benefit plans.

---

Definitions:

Systems Design

The process of defining the architecture, components, modules, interfaces, and data for a system to satisfy specified requirements.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible into known amounts of cash with original maturities of three months or less.

Highly Liquid

Describes assets that can be quickly and easily converted into cash with minimal impact on their value.

Vouchers

Documents that serve as evidence of a transaction and propose a future payment, detailing the conditions and amounts to be paid.