Which Statement Is False

question 87

Multiple Choice

Which statement is false?

• A) In the computation of pension expense, a negative return on plan assets can be added.
• B) The amount of prior service cost is not included as an asset or a liability.
• C) Interest cost is equal to the projected benefit obligation at the end of the period multiplied by the discount rate used by the company.
• D) A lower-than-expected mortality rate creates a pension loss to a company.

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Definitions:

Supply Curve

A graph that shows the relationship between the price of a good and the quantity of the good that producers are willing to sell.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefit to society from the production and consumption of goods and services.

Transplant Organs

Organs removed from one body and placed in another's body for the purpose of replacing a missing or defective organ.

Market

An economic system where goods and services are freely exchanged between buyers and sellers under competitive conditions.