Listed Below Are Five Terms Followed by a List of Phrases

question 178

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term.
-Return on plan assets less than the expectation

• A)Caused by plan amendment.
• B)Causes a loss-other comprehensive income.
• C)Causes a gain-other comprehensive income.
• D)Caused by changes in assumptions used to measure the PBO.
• E)Pension plan assets exceed the PBO.

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Definitions:

Balance

The equality between the sum of the debits and credits in an account, or the stability between opposing forces.

Compounded Annually

Refers to interest calculated once a year on the principal, including any previously earned interest.

Balance

In mathematics, the state in which both sides of an equation or an inequality have equal values or weights.

Compounded Monthly

The process of applying interest on both the initial principal and the accumulated interest of previous periods on a monthly basis.