With Respect to Pension Liabilities, Which of the Following Statements

question 32

Multiple Choice

With respect to pension liabilities, which of the following statements are true?
I. The projected benefit obligation (PBO) is always greater than or equal to the accumulated benefit obligation (ABO) .
II. The vested benefit obligation (VBO) is always as least as or as big as the accumulated benefit obligation (ABO) .
III. If the PBO is greater than the plan assets, the plan is said to be overfunded.
IV. If the weighted-average assumed discount rate is increased, the PBO will decrease.

• A) I, III and IV
• B) I and III
• C) II and IV
• D) I and IV

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Definitions:

Units Of A

A measure of quantity for a specific or undefined item, referred to as 'A'.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on the consumer's income and the prices of goods and services.

Units Of B

This term is not clearly defined without context and could potentially refer to any measurement involving the variable "B."

Units Of A

Indicates discrete quantities or measurements of a given entity or substance, allowing for the quantification and assessment in various contexts.