Question

Under U.S. GAAP, what is the present value of all future retirement payments attributed by the pension benefit formula to employee services rendered prior to that date and based on past and current compensation levels only

A. Service cost.
B. Interest cost.
C. Projected benefit obligation.
D. Accumulated benefit obligation.

Answer 1

Answer: Accumulated Benefit Obligation

Step-by-step explanation:

U.S. GAAP has provided for the accumulated benefit obligation that is the present value of future retirement payments attributed to the pension benefit formula to employee services rendered prior to a date, based on current and past compensation levels.