NASSAU COMMUNITY COLLEGE DEPARTMENT OF ACCOUNTING &BUSINESS; ACC 202 PART 3: ACC
ID: 2596501 • Letter: N
Question
NASSAU COMMUNITY COLLEGE DEPARTMENT OF ACCOUNTING &BUSINESS; ACC 202 PART 3: ACCOUNTING FOR PENSIONS (MATCHING): EXAM 4 A list of terms (a-i) and a list of descriptive phrases (1-9) related to pension accounting are provided below: a. Actuary b. Expected return on plan assets c. Defined benefit plan d. Noncontributory plan e. Prior service cost f. Service cost 8. Accumulated benefits approach h. Pension expense i. Pension reform act of 1974 (ERISA) 1. Amount normally recorded at the end of a period and often at the time of funding, although not equal to the amount of funding. 2. Uses compound interest techniques with projections of future events to estimate components of pension costs. 3. Specifically states either postretirement benefits or the method of determining 4. 5. -6. -7. 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 (what get subtracted when we compute pension expense). 8. Assigns pension costs to the years of service, using the plan formula and the actual history of service and pay. 9. Is the amount actuarially assigned to years before the inception of the plan. Required: Match each item to its descriptive phrase by placing the appropriate letter in the space provided.Explanation / Answer
1.h. pension expense
2.a actuary
3.c defined benefit plan
4. F service cost
5.i pension reform act of 1974(ERISA)
6.d non contributary plan
7.b expected return on plan assets
8.g accumulated benefit obligation
9.e prior service cost
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