Amortizing a Net Loss for Pensions Will

question 31

Multiple Choice

Amortizing a net loss for pensions will:

• A)increase retained earnings and increase accumulated other comprehensive income.
• B)decrease retained earnings and decrease accumulated other comprehensive income.
• C)increase retained earnings and decrease accumulated other comprehensive income.
• D)decrease retained earnings and increase accumulated other comprehensive income.Pension expense decrease net income and thus RE.The net loss is a negative (debit) AOCI amount , so reducing the negative (debit) balance increases AOCI.

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Definitions:

Governmental Contracts

Legal agreements between government entities and private parties or other government agencies, primarily for the procurement of goods, services, or construction.

Promissory Estoppel

A legal principle that prevents a promisor from retracting a promise when the promisee has reasonably relied on that promise to their detriment.

Statute

A written law passed by a legislative body, serving as a rule or principle that must be adhered to.

Firm Offers

In contract law, a promise to keep an offer open for a specified period during which it can't be withdrawn, typically supported by consideration or under UCC rules.