Unrecognized Prior Service Cost Can Be Amortized Based on Which

question 39

Multiple Choice

Unrecognized prior service cost can be amortized based on which of the following methods?

• A) Straight-line method using any systematic rational approach
• B) Straight-line method based on the average remaining service period of the qualified employees
• C) Interest method using the actuary's discount rate
• D) Service method based on the average remaining service period of the qualified employees

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Definitions:

Round

Rounding is the process of adjusting a number to a nearby value that is shorter, simpler, or more explicit, often to a specified number of decimal places or significant digits.

Completing the Square

A method used in algebra to solve quadratic equations by converting the equation into a perfect square trinomial.

Completing The Square

A method used to solve quadratic equations by adding a constant term to both sides to form a perfect square trinomial.

Compounded Annually

The process of calculating interest on both the initial principle and the accumulated interest of previous periods once per year.