Interest Cost Relating to Defined-Benefit Pension Plans Represents the

question 47

Multiple Choice

Interest cost relating to defined-benefit pension plans represents the

• A) increase in projected benefit obligation as a result of recomputing the firm's pension obligation when estimated turnover and other relevant factors related to the pension are reassessed.
• B) increase in the projected benefit obligation during the year resulting from all factors affecting the projected benefit obligation.
• C) increase in the projected benefit obligation from the beginning of the year to the end of the year solely due to the passage of time.
• D) expected return on the plan assets for the year.

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Definitions:

Consensus

This term means general agreement among a group or the shared conclusions of a collective.

Stereotype

A generalized (sometimes accurate but often overgeneralized) belief about a group of people.

Latin-American

Pertaining to cultures and peoples of countries in the Americas where Romance languages, primarily Spanish and Portuguese, are spoken.

Impractical

Not sensible or realistic in application; not feasible in practice.