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Worldatwork Exam T7 Topic 2 Question 106 Discussion

Actual exam question for Worldatwork's T7 exam
Question #: 106
Topic #: 2
[All T7 Questions]

Which of the following should be used when discounting a benefit in order to determine the present value of the defined benefit obligation and the current service cost?

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Suggested Answer: C

by Stephania at Jan 24, 2025, 06:44 PM

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Elli
5 months ago
The corporate vision? Haha, nice try, but I don't think the company's aspirations are going to affect the defined benefit obligation.
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Broderick
4 months ago
C) Net present value
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Howard
4 months ago
B) Time value of money
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Evette
5 months ago
I believe A) Fair value is important too, as it reflects the current market value.
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Aleisha
5 months ago
I think C) Net present value could also be considered for determining present value.
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Shaun
5 months ago
I agree with Marshall, time value of money is essential for discounting benefits.
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Marshall
5 months ago
B) Time value of money should be used.
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Gianna
5 months ago
Net present value? Really? That's just silly. You need to account for the time value, not the overall value.
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Tequila
4 months ago
Exactly, net present value doesn't make sense in this context.
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Diane
4 months ago
Time value of money is crucial for discounting benefits.
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Demetra
4 months ago
D) The corporate vision
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Alona
4 months ago
C) Net present value
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Marla
4 months ago
B) Time value of money
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Lezlie
5 months ago
A) Fair value
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Nada
5 months ago
The time value of money, of course. How else would we determine the present value?
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Fidelia
4 months ago
Net present value is used for investment appraisal, not for discounting benefits in pension accounting.
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Robt
4 months ago
Exactly, it's essential for discounting future cash flows to their present value.
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Ramonita
4 months ago
The time value of money takes into account the fact that money today is worth more than the same amount in the future.
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Afton
4 months ago
D) The corporate vision
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Detra
4 months ago
C) Net present value
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Justine
5 months ago
B) Time value of money
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Soledad
5 months ago
A) Fair value
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