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Basic Question 10 of 24

The component of periodic pension expense that represents the actuarial present value of the increase in an employer's pension obligation to employees because of their services rendered during the current period is the:

A. Service cost.
B. Accumulated benefit obligation (ABO).
C. Projected benefit obligation (PBO).

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

explain and calculate measures of a defined benefit pension obligation (i.e., present value of the defined benefit obligation and projected benefit obligation) and net pension liability (or asset);

describe the components of a company's defined benefit pension costs;

explain and calculate the effect of a defined benefit plan's assumptions on the defined benefit obligation and periodic pension cost;

CFA® 2025 Level II Curriculum, Volume 2, Module 11.