The Major Difference Between Accounting for Pensions and the Accounting

question 67

Multiple Choice

The major difference between accounting for pensions and the accounting for other postretirement benefits is that firms:

• A) do not need to report an excess of the accumulated benefits obligations over assets in a postretirement benefits fund as a liability on the balance sheet.
• B) do not need to disclose any estimates used in calculating projected benefits.
• C) postretirement benefits are normally not material for most companies and do not need to be disclosed.
• D) do not need to set aside funds for future postretirement benefits as they do for pension benefits.

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Definitions:

Androgen

A group of hormones that play a role in male traits and reproductive activity; present in both males and females.

Growth Spurt

A rapid period of growth in height and weight, typically occurring during puberty.

Muscle Tissue

A type of body tissue specialized for contraction, which enables movement of the body and its parts.

Testes

Male reproductive organs that produce sperm and hormones, particularly testosterone.