Amortizing a net loss for pensions will ________.

Question

Quizplus · Accepted Answer

Amortizing a net loss for pensions means recognizing a portion of the loss each period in the income statement, which will decrease retained earnings. However, because the loss is related to pensions, it is also recognized in accumulated other comprehensive income, which will increase. Therefore, the correct answer is that it will decrease retained earnings and increase accumulated other comprehensive income.

Amortizing a Net Loss for Pensions Will ________