Which of the Following Is $\underline{not}$ A True Statement Regarding SFAS No

question 46

Multiple Choice

Which of the following is $\underline{not}$ a true statement regarding SFAS No. 87?

• A)It requires the recognition of a minimum pension liability when accumulated benefit obligations exceed the fair value of plan assets.
• B)It has achieved greater uniformity in measuring accrued pension expense.
• C)It mandates the use of the accumulated benefit method.
• D)It uses service cost rather than normal cost.

---

Definitions:

Double Compensation

The act of receiving two separate forms of payment or reimbursement for the same expense or loss.

Partner Competes

An act where a partner engages in a business activity that competes with the business of the partnership, potentially violating their fiduciary duty.

Competing Venture

A business or project undertaken by an entity that is in direct competition with another enterprise in the same market segment.

Additional Compensation

Extra payment or remuneration provided to an employee or contractor beyond their basic salary or fees, often for achieving specific targets or for extra duties.