D. the shortest possible period for funding to maximize the tax deduction.
41) The relationship between the amount funded and the amount reported for pension expense is as follows:
A. pension expense will be more than the amount funded. B. pension expense will be less than the amount funded. C. pension expense must equal the amount funded.
D. pension expense may be greater than, equal to, or less than the amount funded.
42) The projected benefit obligation is the measure of pension obligation that
A. requires the longest possible period for funding to maximize the tax deduction.
B. requires pension expense to be determined solely on the basis of the plan formula applied to years of service to date and based on existing salary levels.
C. is required to be used for reporting the service cost component of pension expense.
D. is NOT sanctioned under generally accepted accounting principles for reporting the service cost component of pension expense.
43) Yeager Co. maintains a defined-benefit pension plan for its employees. At each balance sheet date, Yeager should report a minimum liability at least equal to the
A. unfunded accumulated benefit obligation. B. projected benefit obligation.