What Effect Did the Requirement to Replace the Minimum Liability

question 15

Multiple Choice

What effect did the requirement to replace the minimum liability requirement with the funded status of a pension plan have for overfunded pension plans?.

• A)Return on assets decreased.
• B)There was no effect on return on assets.
• C)The debt-to-Equity ratios increased.
• D)Return on common stockholders' equity increased.

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Definitions:

Proportion

A part, share, or number considered in comparative relation to a whole.

Independent

Not influenced or controlled by others; acting freely.

P(A|B)

The likelihood of event A happening provided that event B has taken place.

P(B|A)

The probability of event B occurring given that event A has already occurred.