If a Pension Plan Amendment Is Adopted and Retroactive Benefits

question 1

Multiple Choice

If a pension plan amendment is adopted and retroactive benefits are granted to employees, the amount of the prior service cost at the date of grant is accounted for

• A)as an intangible asset and liability that are recognized on the plan amendment date
• B)as a prior period adjustment for the total amount of the prior service cost that is reported on the statement of retained earnings
• C)as the total amount of the prior service cost that is recognized as an expense on the current period's income statement
• D)initially as an unamortized amount to be included in the computation of pension expense over future periods

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Definitions:

Faucet

A valve controlling the release of liquids, typically water, from a system of pipes.

Hand Hygiene

Practices to remove or kill microorganisms on the hands, which is considered the most important measure to prevent the spread of infections.

Contaminated Supplies

Medical or other supplies that have been exposed to pathogens or pollutants, rendering them unsafe for use.

Central Sterile

Refers to the department within a hospital or medical facility that is dedicated to the sterilization and preparation of medical equipment and instruments for surgery and other procedures.