Question

Service cost is: Multiple Choice Calculated by multiplying the beginning balance in plan assets by the expected rate of return. Equal to the increase in the projected benefit obligation resulting from benefits earned by employees in the current period. Calculated by multiplying the beginning balance of the projected benefit obligation by the interest rate. Equal to the increase or decrease in the projected benefit obligation resulting from the initiation of a plan or an amendment to a plan.

Answer 1

Answer: Equal to the increase in the projected benefit obligation resulting from benefits earned by employees in the current period

Explanation:

Service cost is equal to the increase in the projected benefit obligation resulting from benefits earned by employees in the current period.

Service cost is the amount of money that is out aside by an employer every year in order to cover for the pension of the workers when they retire. It is the expense when someone else does a task for an economic entity.