The Attribution Approach Required by GAAP for Postretirement Health Care

question 169

Multiple Choice

The attribution approach required by GAAP for postretirement health care plans is to assign:

• A) An equal fraction of the EPBO to each year the employee is on the company payroll.
• B) An equal fraction of the APBO to each year the employee is on the company payroll.
• C) An equal fraction of the APBO to each year of service from the employee's hire date to the employee's full eligibility date.
• D) An equal fraction of the EPBO to each year of service from the employee's hire date to the employee's full eligibility date.

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Definitions:

Internal States

Refers to an individual's psychological and physiological condition at any given time, including emotions, thoughts, and body sensations.

External Behaviors

Observable actions or reactions of individuals in response to external stimuli.

Neurotransmitter Serotonin

Serotonin is a neurotransmitter in the brain involved in regulating mood, appetite, sleep, memory, and learning; imbalances are linked to depression and other mood disorders.

Stressful Life Events

Significant occurrences in a person's life that disrupt the typical flow of daily life and can have profound effects on psychological and physiological well-being.