Question 1

Which of the following is not a required note disclosure related to pension plans under FASB ASC Topic 715?

Accepted Answer

A)  Fair value of plan assets 
B)  Actuarial discount rate 
C)  Projected benefit obligation 
D)  Number of employees covered by the plan 
A)  Fair value of plan assets 
B)  Actuarial discount rate 
C)  Projected benefit obligation 
D)  Number of employees covered by the plan

Question 2

On August 31,2014,payroll data from the records of Astroland Enterprises showed:
   Provide the entries necessary to:

Accepted Answer

@#IMG-DLM& To record the payment of August 31 payr

Question 3

Which of the following taxes is NOT included in the payroll tax expense of the employer?

Accepted Answer

A)  State unemployment taxes 
B)  Federal income taxes 
C)  FICA taxes 
D)  Federal unemployment taxes 
A)  State unemployment taxes 
B)  Federal income taxes 
C)  FICA taxes 
D)  Federal unemployment taxes

Question 4

The interest cost component for other postretirement benefits is determined using

Accepted Answer

A)  the settlement rate of interest. 
B)  the rate of return on high quality fixed-income investments with cash flows matching the timing and amounts of expected benefit payments. 
C)  both of these. 
D)  neither of these. 
A)  the settlement rate of interest. 
B)  the rate of return on high quality fixed-income investments with cash flows matching the timing and amounts of expected benefit payments. 
C)  both of these. 
D)  neither of these.

Question 5

The following information relates to the defined benefit pension plan of the Steamer Company for the year ending December 31,2014:   The net periodic pension cost reported in the income statement for 2014 would be

Accepted Answer

A)  $11,500. 
B)  $24,000. 
C)  $36,500. 
D)  $59,000. 
A)  $11,500. 
B)  $24,000. 
C)  $36,500. 
D)  $59,000.

Question 6

Gordon Inc.has a defined benefit plan for its employees.The following information relates to this plan:   There was no unrecognized prior service cost or unrecognized gains or losses.Gordon's net periodic pension cost for the year was

Accepted Answer

A)  $968,000. 
B)  $940,000. 
C)  $900,000. 
D)  $880,000. 
A)  $968,000. 
B)  $940,000. 
C)  $900,000. 
D)  $880,000.

Question 7

Interest cost relating to defined-benefit pension plans represents the

Accepted Answer

A)  increase in projected benefit obligation as a result of recomputing the firm's pension obligation when estimated turnover and other relevant factors related to the pension are reassessed. 
B)  increase in the projected benefit obligation during the year resulting from all factors affecting the projected benefit obligation. 
C)  increase in the projected benefit obligation from the beginning of the year to the end of the year solely due to the passage of time. 
D)  expected return on the plan assets for the year. 
A)  increase in projected benefit obligation as a result of recomputing the firm's pension obligation when estimated turnover and other relevant factors related to the pension are reassessed. 
B)  increase in the projected benefit obligation during the year resulting from all factors affecting the projected benefit obligation. 
C)  increase in the projected benefit obligation from the beginning of the year to the end of the year solely due to the passage of time. 
D)  expected return on the plan assets for the year.

Question 8

Redman Corporation is a publicly held company that supplies tourniquets to medical emergency centers.The company maintains a noncontributory defined benefit pension plan for its employees.The Redman's actuary has provided the following information for the year ended December 31,2014:   Prior contributions to the defined benefit pension plan equaled the amount of net periodic pension cost accrued for the previous year end.If no contributions have been made for 2014 pension cost,what amount should Redman report in its December 31,2014,balance sheet for accrued pension cost?

Accepted Answer

A)  $218,000 
B)  $242,000 
C)  $324,000 
D)  $406,000 
A)  $218,000 
B)  $242,000 
C)  $324,000 
D)  $406,000

Question 9

Quinn Company has a defined benefit plan.The fair value of plan assets on January 1,2014,was $1,500,000.No unrecognized net loss or gain existed.On December 31,2014,the fair value of the plan assets was $1,860,000.Benefits paid to retirees equaled $300,000.Company contributions to the plan totaled $360,000.The settlement rate was 8 percent,and the expected long-term rate of return on plan assets was 10 percent.The actual return on plan assets was

Accepted Answer

A)  $150,000. 
B)  $180,000. 
C)  $224,000. 
D)  $300,000. 
A)  $150,000. 
B)  $180,000. 
C)  $224,000. 
D)  $300,000.

Question 10

Which of the following statements characterizes defined benefit plans?

Accepted Answer

A)  They are comparatively simple in construction and raise few accounting issues for employers. 
B)  Retirement benefits depend on how well pension fund assets have been managed. 
C)  Retirement benefits are based on the plan's benefit formula. 
D)  All of these. 
A)  They are comparatively simple in construction and raise few accounting issues for employers. 
B)  Retirement benefits depend on how well pension fund assets have been managed. 
C)  Retirement benefits are based on the plan's benefit formula. 
D)  All of these.

Question 11

Pandora Company determined that it has an obligation relating to employees' rights to receive compensation for future absences attributable to employees services already rendered.The obligation relates to rights that vest,and payment of the compensation is probable.The amounts of Pandora's obligations as of December 31 are reasonably estimated as follows:   In its December 31 balance sheet,what amount should Pandora report as its liability for compensated absences?

Accepted Answer

A)  $190,000 
B)  $110,000 
C)  $80,000 
D)  $0 
A)  $190,000 
B)  $110,000 
C)  $80,000 
D)  $0

Question 12

Which of the following concepts for postretirement benefit plans is comparable to the projected benefit obligation (PBO)of pension plans?

Accepted Answer

A)  Accumulated Postretirement Benefit Obligation (APBO) 
B)  Expected Postretirement Benefit Obligation (EPBO) 
C)  Actual return on plan assets 
D)  Expected return on plan assets 
A)  Accumulated Postretirement Benefit Obligation (APBO) 
B)  Expected Postretirement Benefit Obligation (EPBO) 
C)  Actual return on plan assets 
D)  Expected return on plan assets

Question 13

The following information relates to Aracely Inc.at December 31,2014:   The total pension liability at December 31,2014,for Aracely Inc.is

Accepted Answer

A)  $0. 
B)  $440,000. 
C)  $480,000. 
D)  $520,000. 
A)  $0. 
B)  $440,000. 
C)  $480,000. 
D)  $520,000.

Question 14

Vast Ocean Corporation has an incentive compensation plan under which the sales manager receives a bonus equal to 10% of the company's income after deducting income taxes but before deducting the bonus.Income before income tax and the bonus is $80,000.The effective income tax rate is 40%.How much is the bonus?

Accepted Answer

A)  $8,000 
B)  $5,000 
C)  $4,800 
D)  $4,320 
A)  $8,000 
B)  $5,000 
C)  $4,800 
D)  $4,320

Question 15

If the actual return on pension fund assets exceeds the expected return for the period,the difference is

Accepted Answer

A)  a deferred loss. 
B)  a deferred gain. 
C)  recognized as a loss in the current period. 
D)  recognized as a gain in the current period. 
A)  a deferred loss. 
B)  a deferred gain. 
C)  recognized as a loss in the current period. 
D)  recognized as a gain in the current period.

Question 16

Laid Back Corp.follows the practice of paying all employees for vacation.The vacation pay is not vested,but it carries over for one year if unused.Under GAAP,the obligation for earned but unused vacation should be

Accepted Answer

A)  accrued as a current liability. 
B)  disclosed as a contingent liability. 
C)  ignored until incurred. 
D)  accrued or not accrued according to the judgment of management. 
A)  accrued as a current liability. 
B)  disclosed as a contingent liability. 
C)  ignored until incurred. 
D)  accrued or not accrued according to the judgment of management.

Question 17

Which of the following represents the best description of the projected benefit obligation at any balance sheet date?

Accepted Answer

A)  Service cost to date + interest cost to date + unrecognized gain or loss at the balance sheet date 
B)  Service cost to date + prior service cost to date + unrecognized gain or loss at the balance sheet date 
C)  Service cost to date + interest cost to date - amortized prior service cost - actual return - benefits paid to date 
D)  Service cost to date + interest cost + net total actuarial gain or loss + prior service cost to date - benefits paid to date 
A)  Service cost to date + interest cost to date + unrecognized gain or loss at the balance sheet date 
B)  Service cost to date + prior service cost to date + unrecognized gain or loss at the balance sheet date 
C)  Service cost to date + interest cost to date - amortized prior service cost - actual return - benefits paid to date 
D)  Service cost to date + interest cost + net total actuarial gain or loss + prior service cost to date - benefits paid to date

Question 18

Pension-related estimates (not funding data)are provided by the

Accepted Answer

A)  employer company. 
B)  independent actuary. 
C)  pension fund trustees. 
D)  employee union. 
A)  employer company. 
B)  independent actuary. 
C)  pension fund trustees. 
D)  employee union.

Question 19

The FASB's conclusion relating to the computation of the service cost component of pension expense is that the projected benefit obligation computed using

Accepted Answer

A)  future salary levels provides a reasonable measure of future pension obligation and expense. 
B)  future salary levels provides a reasonable measure of present pension obligation and expense. 
C)  present salary levels provides a reasonable measure of future pension obligation and expense. 
D)  present salary levels provides a reasonable measure of present pension obligation and expense. 
A)  future salary levels provides a reasonable measure of future pension obligation and expense. 
B)  future salary levels provides a reasonable measure of present pension obligation and expense. 
C)  present salary levels provides a reasonable measure of future pension obligation and expense. 
D)  present salary levels provides a reasonable measure of present pension obligation and expense.

Question 20

FASB ASC Topic 715 requires that the notes accompanying the financial statements include a schedule reconciling the

Accepted Answer

A)  funded status of the plan with amounts reported in the balance sheet. 
B)  current period employer contributions with pension expense reported in the income statement. 
C)  projected benefit obligation and the accumulated benefit obligation. 
D)  actual return on plan assets with the expected return. 
A)  funded status of the plan with amounts reported in the balance sheet. 
B)  current period employer contributions with pension expense reported in the income statement. 
C)  projected benefit obligation and the accumulated benefit obligation. 
D)  actual return on plan assets with the expected return.

Which of the following is not a required note disclosure related to pension plans under FASB ASC Topic 715?

On August 31,2014,payroll data from the records of Astroland Enterprises showed: Provide the entries necessary to:

Which of the following taxes is NOT included in the payroll tax expense of the employer?

The interest cost component for other postretirement benefits is determined using

The following information relates to the defined benefit pension plan of the Steamer Company for the year ending December 31,2014: The net periodic pension cost reported in the income statement for 2014 would be

Gordon Inc.has a defined benefit plan for its employees.The following information relates to this plan: There was no unrecognized prior service cost or unrecognized gains or losses.Gordon's net periodic pension cost for the year was

Interest cost relating to defined-benefit pension plans represents the

Which of the following statements characterizes defined benefit plans?

Which of the following concepts for postretirement benefit plans is comparable to the projected benefit obligation (PBO)of pension plans?

The following information relates to Aracely Inc.at December 31,2014: The total pension liability at December 31,2014,for Aracely Inc.is

If the actual return on pension fund assets exceeds the expected return for the period,the difference is

Laid Back Corp.follows the practice of paying all employees for vacation.The vacation pay is not vested,but it carries over for one year if unused.Under GAAP,the obligation for earned but unused vacation should be

Which of the following represents the best description of the projected benefit obligation at any balance sheet date?

Pension-related estimates (not funding data)are provided by the

The FASB's conclusion relating to the computation of the service cost component of pension expense is that the projected benefit obligation computed using

FASB ASC Topic 715 requires that the notes accompanying the financial statements include a schedule reconciling the

Financial Reporting

A Review of the Accounting Cycle

The Balance Sheet and Notes to the Financial Statements

The Income Statement

Statement of Cash Flows and Articulation

Earnings Management

The Revenuereceivablescash Cycle

Revenue Recognition

Inventory and Cost of Goods Sold

Investments in Noncurrent Operating Assets-Acquisition

Investments in Noncurrent Operating Assets-Utilization and Retirement

Debt Financing

Equity Financing

Investments in Debt and Equity Securities

Leases

Income Taxes

Earnings Per Share

Derivatives, contingencies, business Segments, and Interim Reports

Accounting Changes and Error Corrections

Statement of Cash Flows Revisited

Accounting in a Global Market

Analysis of Financial Statements

Filters

Exam 17: Employee Compensation-Payroll, pensions, Other Compissues

Which of the following is not a required note disclosure related to pension plans under FASB ASC Topic 715?

On August 31,2014,payroll data from the records of Astroland Enterprises showed: Provide the entries necessary to:

Which of the following taxes is NOT included in the payroll tax expense of the employer?

The interest cost component for other postretirement benefits is determined using

The following information relates to the defined benefit pension plan of the Steamer Company for the year ending December 31,2014: The net periodic pension cost reported in the income statement for 2014 would be

Gordon Inc.has a defined benefit plan for its employees.The following information relates to this plan: There was no unrecognized prior service cost or unrecognized gains or losses.Gordon's net periodic pension cost for the year was

Interest cost relating to defined-benefit pension plans represents the

Which of the following statements characterizes defined benefit plans?

Which of the following concepts for postretirement benefit plans is comparable to the projected benefit obligation (PBO)of pension plans?

The following information relates to Aracely Inc.at December 31,2014: The total pension liability at December 31,2014,for Aracely Inc.is

If the actual return on pension fund assets exceeds the expected return for the period,the difference is

Laid Back Corp.follows the practice of paying all employees for vacation.The vacation pay is not vested,but it carries over for one year if unused.Under GAAP,the obligation for earned but unused vacation should be

Which of the following represents the best description of the projected benefit obligation at any balance sheet date?

Pension-related estimates (not funding data)are provided by the

The FASB's conclusion relating to the computation of the service cost component of pension expense is that the projected benefit obligation computed using

FASB ASC Topic 715 requires that the notes accompanying the financial statements include a schedule reconciling the

Financial Reporting

A Review of the Accounting Cycle

The Balance Sheet and Notes to the Financial Statements

The Income Statement

Statement of Cash Flows and Articulation

Earnings Management

The Revenuereceivablescash Cycle

Revenue Recognition

Inventory and Cost of Goods Sold

Investments in Noncurrent Operating Assets-Acquisition

Investments in Noncurrent Operating Assets-Utilization and Retirement

Debt Financing

Equity Financing

Investments in Debt and Equity Securities

Leases

Income Taxes

Earnings Per Share

Derivatives, contingencies, business Segments, and Interim Reports

Accounting Changes and Error Corrections

Statement of Cash Flows Revisited

Accounting in a Global Market

Analysis of Financial Statements

Filters