What Was the Main Argument of ARB 36

question 8

Multiple Choice

What was the main argument of ARB 36?

• A)ERISA did not create a pension liability except in the likelihood of plan termination.
• B)The cost of providing pension benefits should be spread over the remaining service life of employees.
• C)Pension expense should be computed using any one of five acceptable accumulated benefit methods, regardless of cash contributions.
• D)The balance sheet should report unfunded vested benefits.

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Definitions:

Void Contract

An agreement that is not legally binding and is unenforceable by law, typically because it lacks one or more essential elements of a valid contract.

Incompetent

Lacking the necessary skills, abilities, or legal qualifications to perform a task or to stand trial.

Binding Agreement

A legally enforceable contract that obligates the parties involved to adhere to the terms outlined within the agreement.

Bilateral Contract

A contract involving two parties where each promises to perform an act in exchange for the other's act.