Solved

Match Each Item to Its Descriptive Phrase by Placing the Appropriate

Question 68

Matching

Match each item to its descriptive phrase by placing the appropriate letter in the space provided.

Premises:
Amount normally recorded at the end of a period and often at the time of funding, although often not equal to the amount of funding.
Uses compound interest techniques with projections of future events to estimate components of pension costs.
Specifically states either postretirement employee benefits or the method of determining such benefits by formula.
Is the primary component of pension cost.
Generally requires service costs to be funded in the current year.
Places the entire pension cost on the employer.
A negative component of pension cost.
Assigns pension costs to the years of service, using the plan formula and the actual history of service and pay.
Is the amount actuarially assigned to years before the inception of the plan.
Responses:
actuary
expected return on plan assets
defined benefit plan
noncontributory plan
prior service cost
service cost
accumulated benefits approach
pension expense
Pension Reform Act of 1974 (ERISA)

Correct Answer:

Amount normally recorded at the end of a period and often at the time of funding, although often not equal to the amount of funding.
Uses compound interest techniques with projections of future events to estimate components of pension costs.
Specifically states either postretirement employee benefits or the method of determining such benefits by formula.
Is the primary component of pension cost.
Generally requires service costs to be funded in the current year.
Places the entire pension cost on the employer.
A negative component of pension cost.
Assigns pension costs to the years of service, using the plan formula and the actual history of service and pay.
Is the amount actuarially assigned to years before the inception of the plan.
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