The Component of Pension Expense That Results from Amending a Pension

question 144

Multiple Choice

The component of pension expense that results from amending a pension plan to give recognition to previous service of currently enrolled employees is the amortization of:

• A) Prior service costs.
• B) Amendment costs.
• C) Retiree service costs.
• D) Transition costs.

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Definitions:

Party

A person or entity involved in a legal transaction or case; can also refer to one side of a contractual agreement.

Notice of Lien

A legal document filed to indicate that a claim of ownership has been placed on a property due to unpaid debts.

Period of Time

A specific duration characterized by a starting point and an ending point.

Equity of Redemption

The right of a borrower to reclaim property that is subject to a mortgage by repaying the debt before the foreclosure sale.