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Which of the Following Is a True Statement Regarding the Pension

Question 61

Multiple Choice

Which of the following is a true statement regarding the pension liability and pension expense recognition requirements of SFAS No. 87?


A) SFAS No. 87 presumes an explicit contract in calculating accrued pension expense.
B) SFAS No. 87 uses an explicit contract view in requiring the recognition of a minimum pension liability.
C) SFAS No. 87 may overestimate the pension liability by including future salary projections in the liability computation.
D) SFAS No. 87 does not include future salary projections in the pension expense calculation.

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