Amortization of Any Net Gain or Loss Is Included in Pension

question 57

Multiple Choice

Amortization of any net gain or loss is included in pension expense of a given year if at the

• A) end of the year, the cumulative net gain or loss exceeds 10% of the greater of the actual projected benefit obligation or the fair value of the plan assets.
• B) beginning of the year, the cumulative net gain or loss exceeds 10% of the greater of the actual accumulated benefit obligation or the fair value of the plan assets.
• C) end of the year, the cumulative gain or loss exceeds 10% of the greater of the actual accumulated benefit obligation or the fair value of the plan assets.
• D) beginning of the year, the cumulative gain or loss exceeds 10% of the greater of the actual projected benefit obligation or the fair value of the plan assets.

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Definitions:

Social Clock

A societal timetable for achieving life's major milestones, such as marriage, parenthood, and retirement.

Adulthood

A phase of life that follows adolescence, marked by full physical development, legal responsibility, and often increased independence and social responsibilities.

Timing

The measurement or tracking of the duration in which events or processes occur, often emphasizing the importance of coordination and synchronization.

Milestones

Significant markers of development or progress in a specific domain, such as physical, cognitive, or social-emotional growth, marking important stages or achievements.