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The Difference Between the Accumulated Benefit Obligation (ABO) and the Projected

question 45

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The difference between the accumulated benefit obligation (ABO) and the projected benefit obligation (PBO) is:


Definitions:

FICA

The Federal Insurance Contributions Act (FICA) is a U.S. law that mandates a payroll tax on both employees and employers to fund Social Security and Medicare programs.

Social Security

A government program that provides financial benefits to retirees, disabled workers, and their families.

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle.

Accounts Payable

Liabilities or amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

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