Question

Exercise 19-59 Defining Pension Terminology LO1, 2, 3, 4, 5, 6 e Terms relating to concepts discussed in this chapter along with descriptions of the terms are included in the fol lowing two lists. 1. Projected benefit a. Amount reported as pension expense for the period; has five components. obligation b. Allocation of the cost of retroactive pension benefits to periodic expense. - 2. Expected retum on c. Actuarial present value of future pension benefits camed as of the plan assets measurement date excluding the effects of expected future compensation 3. Amortization of levels. gains and losses d. Cost of future pension benefits camed during the current accounting period. 4. Pension plan assets The interest rate used to compute the present value of future pension 5. Pension expense benefits earned by employees. 6. Fair value of plan 1. Present value of the employee's benefits at the measurement date not assets) contingent on future employee service, 7. Amortization of pri 8. Allocation of the difference between expected return and actual return on or service costs plan assets and changes in actuarial assumptions to periodic expense. 8. Net pension asset h. Cumulative fund assets in excess of the PBO. 9. Accumulated benefit i. Difference between plan assets at fair value at the beginning and end obligation of the period minus contributions and plus distributions during the -10. Interest cost accounting period 11. Discount rate 1. The value of plan assets between a willing buyer and a willing seller (not 12. Service cost a forced sale). 13. Vested benefit £. Actuarial present value of future pension benefits eamed as of obligation the measurement date, including the effects of current and future -14. Actual return on compensation levels. plan assets 1. Projected benefit obligation at the beginning of the current accounting period multiplied by the discount rate. m. Resources set aside to provide future pension benefits to retirees. n. Beginning market-related value of pension plan assets multiplied by the expected rate of retum. Required Match each term, through 14, with the most appropriate description a through n.

Answer 1

The matching series is:

1 - c

2 - n

3 - g

4 - m

5 - a

6 - j

7 - b

8 - i

9 - h

10 - l

11 - e

12 - f

13 - k

14 - d