extrect1012 extrect1012

25-04-2024
Business

Answered

Which of the following is true regarding the interest rates used to compute service cost and interest cost components of pension expense?

a. GAAP does not issue any guidance on the interest rates to be used to calculate service cost and interest cost.
b. GAAP requires that the same interest rate be used to calculate both service cost and interest cost.
c. GAAP prohibits the same interest rate being used to calculate both service cost and interest cost.

Answer :

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