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The Financial Accounting Standards Board (FASB)issued Rule 106 Regarding Accounting

Question 93

Multiple Choice

The Financial Accounting Standards Board (FASB) issued Rule 106 regarding accounting treatment of company liabilities for retiree health benefits because


A) many firms were using the funds officially set aside for funding retiree health benefits for other purposes.
B) a number of firms have set aside excessive amounts of funds for retiree health benefits and are using this as an accounting ruse to prop up their financial statements.
C) many firms do not have enough money set aside to fund their retiree health benefits and this should be reflected in the company's financial statements.
D) of massive corporate fraud involving funds set aside to fund retiree health benefits.

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