1. The increase in the projected benefit obligation from one additional year of service from employees is referred to as a. employer contribution b. current service cost c. expected return on plan assets d. prior service cost Net pension liability is decreased by a. amortization of prior service costs b. current service costs 2. c. actual return on plan assets d. amortization of net gain in other comprehensive net income 3. When a company amends their existing pension plan to increase the defined-benefit rate, the associated expense is referred to as a. employer contribution b. current service cost c. expected return on plan assets d. prior service cost What is the proper treatment of prior service costs? a. Prior service costs are included in other comprehensive income and amortized over future periods. b. Prior service costs are included in other comprehensive income and amortized retroactively over the most recent three periods. c. Prior service costs are included in net income and expensed in the current year. d. Prior service costs are included in net income and amortized over future periods. 4. 5. Interest cost will a. increase pension expense and reduce plan assets b. increase the PBO and reduce plan assets c. increase the PBO and increase pension expense d. increase pension expense and reduce the return on plan assets