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Which Statement Best Explains the Meaning of "Current Service Cost

Question 27

Multiple Choice

Which statement best explains the meaning of "current service cost"?


A) The present value of pension benefits that employees have earned.
B) The increase in the present value of a defined benefit obligation resulting from employee service in the current period.
C) The amount of funds deposited with the pension trust in the year.
D) The annual contribution required by the employer as specified in the pension plan agreement.

Correct Answer:

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