Question

The FASB requires only the years-of-service method for amortization of prior service cost. a)true b)false

Answer 1

The FASB requires the years-of-service method for amortization of prior service cost.

Step-by-step explanation:

The statement is true. The FASB (Financial Accounting Standards Board) requires the use of the years-of-service method for amortization of prior service cost, which is a method used in pension accounting. This method involves spreading the cost of providing pension benefits over the employees' years of service.