Question 1

Restricted stock plans are less dilutive than stock option plans.

Accepted Answer

A) True 
 B)False

Question 2

Amortizing a net gain for pensions will ________.

Accepted Answer

A) increase retained earnings and increase accumulated other comprehensive income 
B) increase retained earnings and decrease accumulated other comprehensive income 
C) decrease retained earnings and decrease accumulated other comprehensive income 
D) decrease retained earnings and increase accumulated other comprehensive income 
A) increase retained earnings and increase accumulated other comprehensive income 
B) increase retained earnings and decrease accumulated other comprehensive income 
C) decrease retained earnings and decrease accumulated other comprehensive income 
D) decrease retained earnings and increase accumulated other comprehensive income

Question 3

When liability-classified stock options expire,additional paid in capital is increased.

Accepted Answer

A) True 
 B)False

Question 4

For an equity-classified award,what journal entry is made at the date of grant?

Accepted Answer

A)    APIC-Stock Options 
B)    APIC-Stock Options 
C)    Common Stock 
D)    Deferred Compensation 
A)    APIC-Stock Options 
B)    APIC-Stock Options 
C)    Common Stock 
D)    Deferred Compensation

Question 5

Explain the differences between accounting for defined benefit plans under IFRS and under GAAP.

Accepted Answer

Accounting for defined benefit pension p

Question 6

The compensation associated with a share of stock under a restricted stock plan is computed as ________.

Accepted Answer

A) the market price of a share of a similar security 
B) the book value of an unrestricted share of the same stock 
C) the market price of an unrestricted share of the same stock 
D) the book value of a share of similar stock 
A) the market price of a share of a similar security 
B) the book value of an unrestricted share of the same stock 
C) the market price of an unrestricted share of the same stock 
D) the book value of a share of similar stock

Question 7

A higher than expected return on plan assets increases pension costs.

Accepted Answer

A) True 
 B)False

Question 8

In a non-contributory pension plan,employees must fund some or all pension benefits.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about defined benefit pension plans is correct?

Accepted Answer

A) Deferring actuarial gains and losses tends to smooth earnings. 
B) An overfunded pension plan increases a company's leverage. 
C) When the settlement rate is higher,the computed pension obligation increases. 
D) Expected return on plan assets increases pension costs. 
A) Deferring actuarial gains and losses tends to smooth earnings. 
B) An overfunded pension plan increases a company's leverage. 
C) When the settlement rate is higher,the computed pension obligation increases. 
D) Expected return on plan assets increases pension costs.

Question 10

Which of the following is not a method of measuring a company's pension benefit obligation to a company?

Accepted Answer

A) projected benefit obligation 
B) vested benefit obligation 
C) future benefit obligation 
D) accumulated benefit obligation 
A) projected benefit obligation 
B) vested benefit obligation 
C) future benefit obligation 
D) accumulated benefit obligation

Question 11

At December 31,Year 1,Musslewhite Corporation reported a net loss of $2.5 million related to its pension plan,because the actuarial assumptions related to future salary levels changed.Musslewhite's entry to record the results of this change will include ________.

Accepted Answer

A) a debit to Loss-OCI and a credit to Projected Benefit Obligation 
B) a debit to Projected Benefit Obligation and a credit to Loss-OCI 
C) a debit to pension expense and a credit to Projected Benefit Obligation 
D) a debit to pension expense and a credit to loss-OCI 
A) a debit to Loss-OCI and a credit to Projected Benefit Obligation 
B) a debit to Projected Benefit Obligation and a credit to Loss-OCI 
C) a debit to pension expense and a credit to Projected Benefit Obligation 
D) a debit to pension expense and a credit to loss-OCI

Question 12

Net pension liability is decreased by ________.

Accepted Answer

A) amortization of prior service costs 
B) service costs 
C) expected return on plan assets 
D) amortization of net gain in other comprehensive net income 
A) amortization of prior service costs 
B) service costs 
C) expected return on plan assets 
D) amortization of net gain in other comprehensive net income

Question 13

Which of the following is not a component of annual pension expense?

Accepted Answer

A) service cost 
B) prior service costs 
C) actual return on plan assets 
D) interest on the projected benefit obligation 
A) service cost 
B) prior service costs 
C) actual return on plan assets 
D) interest on the projected benefit obligation

Question 14

On January 1,Year 1,Freeman Corporation granted stock options to key employees which allowed these employees to purchase 90,000 shares of the corporation's common stock at $30 per share.These options are intended to compensate employees for the next three years.The options may be exercised within a four-year period beginning January 1,Year 4,by the grantees still employed by the company.No options were terminated during Year 1,but Freeman does have an experience of 5% forfeitures over the life of the stock options.The market price of the stock was $35 per share at the date of grant.Freeman used an appropriate pricing model and estimated the value oh an option at $15.What amount should be charged to compensation expense for the year ended December 31,Year 1?

Accepted Answer

A) $324,000 
B) $337,500 
C) $427,500 
D) $450,000 
A) $324,000 
B) $337,500 
C) $427,500 
D) $450,000

Question 15

Which of the following is not a characteristic of a restricted stock plan?

Accepted Answer

A) The employee cannot sell the awarded shares until the vesting period has expired. 
B) A restricted stock plan has value as long as the underlying shares are selling above zero. 
C) Restricted shares are not stock options. 
D) The employee is taxed on the stock award when it is granted. 
A) The employee cannot sell the awarded shares until the vesting period has expired. 
B) A restricted stock plan has value as long as the underlying shares are selling above zero. 
C) Restricted shares are not stock options. 
D) The employee is taxed on the stock award when it is granted.

Question 16

Which of the following statements regarding IFRS disclosures for defined benefit pension plans is incorrect?

Accepted Answer

A) Most IFRS reporters classify the service cost component of pension cost in operating income. 
B) IFRS reporters must report interest costs and return on plan assets as a part of operating income. 
C) IFRS disclosures and reporting for defined benefit pension plans are similar to those for US GAAP. 
D) Under IFRS,a defined benefit pension plan may be viewed as borrowing from employees. 
A) Most IFRS reporters classify the service cost component of pension cost in operating income. 
B) IFRS reporters must report interest costs and return on plan assets as a part of operating income. 
C) IFRS disclosures and reporting for defined benefit pension plans are similar to those for US GAAP. 
D) Under IFRS,a defined benefit pension plan may be viewed as borrowing from employees.

Question 17

What amount should Fields recognize as compensation expense for Year 1?

Accepted Answer

A) $0 
B) $300,000 
C) $450,000 
D) $900,000 
A) $0 
B) $300,000 
C) $450,000 
D) $900,000

Question 18

Refer to Walker Corporation.Make the journal entries to record the granting of the options and the compensation for Year 1.

Accepted Answer

The answer of Refer to Walker Corporation.Make the journal entries...

Question 19

Companies are required to disclose the intrinsic values of outstanding stock and options granted.

Accepted Answer

A) True 
 B)False

Question 20

At the beginning of the current year,Miller Company has a net gain-Accumulated Other Comprehensive Net Income of $30,000,000.The Projected Benefit Obligation and the plan assets are $225,000,000 and $175,000,000 respectively.The average remaining service period for the employees to receive benefits is 15 years.What is the amount of amortization to pension expense for the year?

Accepted Answer

A) $500,000 
B) $833,333 
C) $1,500,000 
D) $3,333,333 
A) $500,000 
B) $833,333 
C) $1,500,000 
D) $3,333,333

Restricted stock plans are less dilutive than stock option plans.

Amortizing a net gain for pensions will ________.

When liability-classified stock options expire,additional paid in capital is increased.

For an equity-classified award,what journal entry is made at the date of grant?

Explain the differences between accounting for defined benefit plans under IFRS and under GAAP.

The compensation associated with a share of stock under a restricted stock plan is computed as ________.

A higher than expected return on plan assets increases pension costs.

In a non-contributory pension plan,employees must fund some or all pension benefits.

Which of the following statements about defined benefit pension plans is correct?

Which of the following is not a method of measuring a company's pension benefit obligation to a company?

At December 31,Year 1,Musslewhite Corporation reported a net loss of $2.5 million related to its pension plan,because the actuarial assumptions related to future salary levels changed.Musslewhite's entry to record the results of this change will include ________.

Net pension liability is decreased by ________.

Which of the following is not a component of annual pension expense?

Which of the following is not a characteristic of a restricted stock plan?

Which of the following statements regarding IFRS disclosures for defined benefit pension plans is incorrect?

What amount should Fields recognize as compensation expense for Year 1?

Refer to Walker Corporation.Make the journal entries to record the granting of the options and the compensation for Year 1.

Companies are required to disclose the intrinsic values of outstanding stock and options granted.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Earnings Per Share

Accounting Corrections and Error Analysis

Filters

Exam 20: Accounting for Employee Compensation and Benefits

Restricted stock plans are less dilutive than stock option plans.

Amortizing a net gain for pensions will ________.

When liability-classified stock options expire,additional paid in capital is increased.

For an equity-classified award,what journal entry is made at the date of grant?

Explain the differences between accounting for defined benefit plans under IFRS and under GAAP.

The compensation associated with a share of stock under a restricted stock plan is computed as ________.

A higher than expected return on plan assets increases pension costs.

In a non-contributory pension plan,employees must fund some or all pension benefits.

Which of the following statements about defined benefit pension plans is correct?

Which of the following is not a method of measuring a company's pension benefit obligation to a company?

At December 31,Year 1,Musslewhite Corporation reported a net loss of $2.5 million related to its pension plan,because the actuarial assumptions related to future salary levels changed.Musslewhite's entry to record the results of this change will include ________.

Net pension liability is decreased by ________.

Which of the following is not a component of annual pension expense?

Which of the following is not a characteristic of a restricted stock plan?

Which of the following statements regarding IFRS disclosures for defined benefit pension plans is incorrect?

What amount should Fields recognize as compensation expense for Year 1?

Refer to Walker Corporation.Make the journal entries to record the granting of the options and the compensation for Year 1.

Companies are required to disclose the intrinsic values of outstanding stock and options granted.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Earnings Per Share

Accounting Corrections and Error Analysis

Filters