101. Which of the following is/are true?
A. U.S. GAAP and IFRS require firms to recognize the cost of retirement benefits (pensions, health care, life insurance) as an expense while employees work, not when they receive payments or other benefits during retirement.
B. Employers often contribute cash to a trust, an entity legally separate from the employer, to fund their retirement obligations.
C. The accounting records of the trust established to fund the retirement obligations are separate from the accounting records of the employer, and the amounts on the two sets of books usually differ.
D. Payments to employees come from both the employer’s contributions and investment returns of the trust established to fund the retirement obligations.
E. all of the above
102. Which of the following is/are not true?
A. U.S. GAAP and IFRS require firms to recognize the cost of retirement benefits (pensions, health care, life insurance) as an expense while employees work, not when they receive payments or other benefits during retirement.
B. Employers often contribute cash to a trust, an entity legally separate from the employer, to fund their retirement obligations.
C. The accounting records of the trust established to fund the retirement obligations are separate from the accounting records of the employer, and the amounts on the two sets of books usually differ.
D. Payments to employees come from both the employer’s contributions and investment returns of the firm’s long term investment assets established to fund the retirement obligations.
E. all of the above
103. Which of the following is/are not true?
A. U.S. GAAP and IFRS require firms to recognize the cost of retirement benefits (pensions, health care, life insurance) as an expense while employees work, not when they receive payments or other benefits during retirement.
B. Employers often contribute cash to a trust, an entity legally separate from the employer, to fund their retirement obligations.
C. The accounting records of the trust established to fund the retirement obligations are consolidated with the accounting records of the employer.
D. Payments to employees come from both the employer’s contributions and investment returns of the trust established to fund the retirement obligations.
E. all of the above
104. Which of the following is/are not true?
A. U.S. GAAP and IFRS require firms to recognize the cost of retirement benefits (pensions, health care, life insurance) as an expense while employees work, not when they receive payments or other benefits during retirement.
B. Employers often contribute cash to a trust, an entity administered by the employer, to fund their retirement obligations.
C. The accounting records of the trust established to fund the retirement obligations are separate from the accounting records of the employer, and the amounts on the two sets of books usually differ.
D. Payments to employees come from both the employer’s contributions and investment returns of the trust established to fund the retirement obligations.
E. all of the above
105. Which of the following is/are true?
A. U.S. GAAP and IFRS do not permit the employer to prepare consolidated financial statements with the retirement trust.
B. The employer must report the net funded status of each defined benefit retirement plan (that is, the fair value of retirement trust assets minus the retirement trust obligation) as either an asset or a liability on its balance sheet.
C. The employer must report the net funded status of each defined benefit retirement plan and credit (for an overfunded plan) or debit (for an underfunded plan) is to Other Comprehensive Income.
D. Notes to the financial statements provide information about investments made by the retirement trust and how trust assets and liabilities changed during a period.
E. all of the above
106. Which of the following is/are not true?
A. U.S. GAAP and IFRS do not permit the employer to prepare consolidated financial statements with the retirement trust.
B. The employer must report the net funded status of each defined benefit retirement plan (that is, the fair value of retirement trust assets minus the retirement trust obligation) as either an asset or a liability on its balance sheet.
C. The employer must report the net funded status of each defined benefit retirement plan and credit (for an overfunded plan) or debit (for an underfunded plan) is to Other Comprehensive Income.
D. Notes to the financial statements do not provide information about investments made by the retirement trust and how trust assets and liabilities changed during a period.
E. all of the above
107. Which of the following is/are not true?
A. U.S. GAAP and IFRS do not permit the employer to prepare consolidated financial statements with the retirement trust.
B. The employer must report the net funded status of each defined benefit retirement plan (that is, the fair value of retirement trust assets minus the retirement trust obligation) as either an asset or a liability on its balance sheet.
C. The employer must report the net funded status of each defined benefit retirement plan and credit (for an overfunded plan) or debit (for an underfunded plan) is to net income.
D. Notes to the financial statements provide information about investments made by the retirement trust and how trust assets and liabilities changed during a period.
E. all of the above
108. Which of the following is/are not true?
A. U.S. GAAP and IFRS do not permit the employer to prepare consolidated financial statements with the retirement trust.
B. The employer must report the net funded status of each defined benefit retirement plan (that is, the fair value of retirement trust assets minus the retirement trust obligation) as a retained earnings reserve on its balance sheet.
C. The employer must report the net funded status of each defined benefit retirement plan and credit (for an overfunded plan) or debit (for an underfunded plan) is to Other Comprehensive Income.
D. Notes to the financial statements provide information about investments made by the retirement trust and how trust assets and liabilities changed during a period.
E. all of the above
109. Which of the following is/are not true?
A. An employer must recognize changes in the funded status of a defined benefit retirement plan on its balance sheet each period.
B. U.S. GAAP and IFRS do not require the employer to recognize changes in the funded status of a defined benefit retirement plan immediately in net income.
C. Changes in the net funded status of a defined benefit retirement plan because investment performance differs from expectations, or because of changes in actuarial assumptions, or in the retirement benefit formula, initially affect net income.
D. Firms amortize the amounts in Other Comprehensive Income over the expected period of benefit as an adjustment to retirement plan cost.
E. all of the above
110. Which of the following is/are not true?
A. An employer must recognize changes in the funded status of a defined benefit retirement plan on its balance sheet each period.
B. U.S. GAAP and IFRS do not require the employer to recognize changes in the funded status of a defined benefit retirement plan immediately in net income.
C. Changes in the net funded status of a defined benefit retirement plan because investment performance differs from expectations, or because of changes in actuarial assumptions, or in the retirement benefit formula, initially affect other comprehensive income.
D. Firms amortize the amounts in the contingency reserve for underfunded/overfunded retirement plans over the expected period of benefit as an adjustment to retirement plan cost.
E. all of the above