What Was the Main Argument of FASB Interpretation 3

question 62

Multiple Choice

What was the main argument of FASB Interpretation 3?

• 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.

---

Definitions:

Pyroclastic Column

A dense cloud of hot ash, gas, and volcanic matter that rises above a volcano during an explosive eruption.

Lava Dome

A dome-shaped mountain or hill of at least partly solidified lava generally of felsic to intermediate composition.

Lava Flow

Magma that erupts onto the surface and flows downhill from the vent; also the solidified body of rock formed by this magma.

Pyroclastic Flow

A fast-moving current of hot gas and volcanic materials that flows down the sides of a volcano during an explosive eruption.