Indicate with the appropriate letter the nature of each adjustment described below: Type of Adjustment A. Change

Question:

Indicate with the appropriate letter the nature of each adjustment described below:
Type of Adjustment
A. Change in principle
B. Change in estimate
C. Correction of an error
D. Neither an accounting change nor an error

_____ 1. Change in actuarial assumptions for a defined benefit pension plan.
_____ 2. Determination that the projected benefit obligation under a pension plan exceeded the fair value of plan assets at the end of the previous year by $17,000. The only pension-related amount on the was a net pension liability of $30,000.
_____ 3. Pension plan assets for a defined benefit pension plan achieving a rate of return in excess of the amount anticipated.
_____ 4. Instituting a pension plan for the first time and adopting for employers' accounting for defined benefit pension and other postretirement plans.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...