A Net Gain or Loss Affects the Pension Expense Only

question 215

Multiple Choice

A net gain or loss affects the pension expense only if it exceeds an amount equal to what percentage of the PBO or plan assets, whichever is higher?

• A) 5%.
• B) 10%.
• C) 15%.
• D) 20%.

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Definitions:

Journalize

The act of recording a transaction in an accounting journal in the form of a journal entry, following the double-entry system.

Interest Calculations

The process of determining the interest payment on a loan or financial product based on the principal, rate, and period.

Journalize

The act of recording transactions in a company's journal, which includes details like the date, accounts affected, and amounts involved.

Creditor

An entity (person or institution) to which money is owed.