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The approach adopted by the accounting profession to measure a firm s pension obligation is the:...

  1. The approach adopted by the accounting profession to measure a firm s pension obligation is the:

    vested benefit obligation.

    accumulated benefit obligation.

    projected benefit obligation.

    defined benefit obligation.

  1. A pension liability is reported when

    the projected benefit obligation exceeds the fair value of pension plan assets.

    the pension expense reported for the period is greater than the funding amount for the same period.

    accumulated other comprehensive income exceeds the fair value of pension plan assets.

    the accumulated benefit obligation is less than the fair value of pension plan assets.

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Answer #1

Answer 1)projected benefit obligation

Answer 2)the projected benefit obligation exceeds the fair value of pension plan assets.

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