Unrecognized Prior Service Cost Can Be Amortized Based on Which

question 39

Multiple Choice

Unrecognized prior service cost can be amortized based on which of the following methods?

• A) Straight-line method using any systematic rational approach
• B) Straight-line method based on the average remaining service period of the qualified employees
• C) Interest method using the actuary's discount rate
• D) Service method based on the average remaining service period of the qualified employees

---

Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise that the other party has reasonably relied on to their detriment.

Restitution

A remedy in law requiring a party to restore the victim to the position they were in before the wrongful act.

Parol Evidence Rule

A legal principle that prevents the introduction of verbal statements that are outside the written contract, intended to clarify or contradict the document's terms.

Typographical Error

A mistake made in the typed or printed text, often referred to as a typo.