Which of the Following Statements Is True Concerning Prior Service

question 14

Multiple Choice

Which of the following statements is true concerning prior service cost?

• A) Prior service costs are the costs of retroactive benefits.
• B) Prior service cost is reported as a liability at the date of the plan amendment.
• C) Prior service cost is reported as a negative element of other comprehensive income at the date of the plan amendment.
• D) All of the choices

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Definitions:

Multiple Determination

A statistical measure that indicates how well data fit a statistical model – often denoted as R-squared in the context of multiple regression analysis.

Multiple Correlation

A measure that represents the strength and direction of a linear relationship between one dependent variable and two or more independent variables.

Multiple-regression Equation

A mathematical method used to depict how a dependent variable is related to two or more independent variables by applying a linear formula to the data collected.

Estimated Regression Coefficient

A coefficient estimated from data that quantifies the relationship between the independent variable and the dependent variable in a regression analysis.