Exam 17: Pensions and Other Postretirement Benefits

Listed below are six terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term. -APBO (postretirement)

Accounting for postretirement health care benefits is similar, in most respects, to accounting for:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term. -Vesting requirements

Colombo Enterprises has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $75,000; service cost, $14,000; interest cost, $6,000; benefits paid for the year, $9,000; ending PBO, $89,000; and the expected return on plan assets, $10,000. There were no other pension-related costs. The journal entry to record the annual pension costs will include a debit to pension expense for:

Eligibility for postretirement health care benefits usually is based on the employee's:

The following information is related to the defined benefit pension plan of Dreamworld Company for the year: -Assuming no other relevant data exist, what is the pension expense for the year?

Compared to the ABO, the PBO usually is:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term. -Delayed recognition in earnings

Consider the following: I. Present value of vested benefits at present pay levels. II. Present value of nonvested benefits at present pay levels. III. Present value of additional benefits related to projected pay increases. - Which of the above constitutes the projected benefit obligation?

The employer has an obligation to provide future benefits for:

In its 2018 annual report to shareholders, JDS Corporation disclosed the following information about its pension plan: (\ in millions) PROJECTED BENEFIT OBLIGATION Beginning balance \ 120.0 \ 102.2 Service cost 4.1 5.5 Interest cost 7.0 6.5 Benefits paid (2.6) (4.4) Actuarial loss Ending balance \ 135.1 \ 121.2 The increase in the underfunded projected benefit obligation was primarily attributable to a reduction in the assumed discount rate. This was combined with the effect of increases in benefits under the terms of the plan in excess of current inflation rates. The net result was reflected as a reduction in accumulated other comprehensive income. -Explain how the loss is reported in the financial statements (other than the balance sheet).

The balance of the plan assets can change due to:

Listed below are six terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term. -Service cost

The three components of pension expense that are present most often are:

A net gain or loss affects the pension expense only if it exceeds an amount equal to what percentage of the PBO or plan assets, whichever is higher?

Defined contribution pension plans that link the amount of contributions to company performance are often called:

If a pension plan is underfunded, the company has a net loss-OCI.

Which of the following statements typifies defined contribution plans?

The key elements of a defined benefit pension plan include all of the following except:

The difference between pension plan assets and the PBO is equal to the funded status of the plan.