- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 11. Employee Compensation: Post-Employment and Share-Based
- Subject 2. Accounting for Defined Benefit Plans
CFA Practice Question
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:
B. Accumulated benefit obligation (ABO).
C. Projected benefit obligation (PBO).
A. Service cost.
B. Accumulated benefit obligation (ABO).
C. Projected benefit obligation (PBO).
Correct Answer: A
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