Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

1. Which of the following statements is true regarding a defined…

1. Which of the following...
1. Which of the following statements is true regarding a defined contribution pension plan?

a) The pension benefits to be received by the employee during retirement are defined in the plan.
b) Defined contribution plans are the most popular type of pension plan for large corporations.
c) Defined contribution plans do not define the required benefits that must be paid to retired employees.
d) Employers that use defined contribution plans are assuming more risks than employers that use defined benefit plans.

2. According to current GAAP, termination benefits paid to an employee should be:
a) charged to an intangible asset and amortized straight-line over the next 15 years
b) charged to a loss
c) charged to retained earnings
d) charged to an intangible asset and amortized over the projected years of service of the remaining work force

3. The accumulated benefit obligation is equal to the

a) actuarial present value of all benefits earned as of a specified date, both vested and nonvested, by employees using current salary levels in the pension plan formula
b) actuarial present value of all benefits earned as of a specified date, both vested and nonvested, by employees using anticipated future salary levels in the pension plan formula
c) difference between the annual pension expense and the amount actually funded during the year
d) actuarial present value of benefits attributed by the pension plan formula to services rendered by employees during the current year

4. Amortization of any unrecognized net gain or loss is included in pension expense of a given year if at the:
a) end of the year, the cumulative unrecognized net gain or loss exceeds 10% of the greater of the actual projected benefit obligation or the fair value of the plan assets
b) beginning of the year, the cumulative unrecognized net gain or loss exceeds 10% of the greater of the actual accumulated benefit obligation or the fair value of the plan assets
c) end of the year, the cumulative gain or loss exceeds 10% of the greater of the actual accumulated benefit obligation or the fair value of the plan assets
d) beginning of the year, the unrecognized cumulative gain or loss exceeds 10% of the greater of the actual projected benefit obligation or the fair value of the plan assets

5. O’Brien began a defined benefit pension plan on January 1, 2010. During 2010, the service cost was $450,000. O’Brien contributed $450,000 to the pension plan for 2010. The actuary said the projected benefit obligation at December 31, 2010 was $450,000. As of December 31, 2010, what statements can O’Brien make about the pension plan?
I. The pension plan is fully funded.
II. O’Brien does not need to report a liability regarding the pension plan at December 31, 2010.
a) I
b) II
c) both I and II
d) neither I nor II

6. The McMurry Company offers employees a defined contribution pension plan. In 2010, McMurry contributed $75,000 to the plan, which paid $95,000 to retired employees. Which of the following statements is true?
a) McMurry will record an accrued liability of $20,000.
b) McMurry will report pension expense of $75,000.
c) McMurry will recognize prior service cost of $20,000.
d) McMurry will recognize actuarial gains and losses on the plan over current and future periods.

7. Disclosures for a defined benefit pension plan should include which of the following?

I. number of beneficiaries
II. reconciliation of the ending value of the projected benefit obligation
III. reconciliation of the ending fair value of the plan assets
IV. the composition of plan assets
V. the discount rate used
VI. expected long-term rate of return on plan assets
a) I, II, III, IV
b) I, III, V, VI
c) II, III, V, VI
d) III, IV, V, VI

8. Current GAAP requires that the financial statements issued by a funding agency for a company's pension plan include all of the following except

a) information about the net assets (at fair value) available for benefits at the end of the plan year
b) a financial statement (on a cash basis) presenting information about the pension payments to retirees
c) a financial statement containing information about the changes during the year in the net assets available for benefits
d) information about the actuarial present value of accumulated plan benefits

9. The expense for other postretirement benefits, such as health care benefits, dental benefits, and eye care benefits, currently is accounted for

a) on an accrual basis
b) on a cash basis
c) on either a cash basis or an accrual basis; both methods are acceptable
d) by footnote disclosure only

10. If an employer were to account for a defined benefit pension plan on the cash basis, it would be a violation of the: a) going-concern assumption
b) accrual concept c) separate entity concept d)double-entry accounting
Show More
Show Less
Ask Your Own Finance Question
Answered in 7 minutes by:
3/16/2011
Manal Elkhoshkhany
Category: Finance
Satisfied Customers: 9,999
Experience: More than 5000 online tutoring sessions.
Verified

Hello camaleon

 

Is this a timed assignment?

Ask Your Own Finance Question
Customer reply replied 7 years ago

Yes!

ok, please check the last question it seems missing one of the choices
Ask Your Own Finance Question
Customer reply replied 7 years ago

10. If an employer were to account for a defined benefit pension plan on the cash basis, it would be a violation of the

a) going-concern assumption
b) accrual concept
c) separate entity concept
d) double-entry accounting

Here you go :)

 

Please click on the following link:

 

http://www.box.net/shared/xnpyktsgfp

 

Regards,

Manal Elkhoshkhany
Category: Finance
Satisfied Customers: 9,999
Experience: More than 5000 online tutoring sessions.
Verified
Manal Elkhoshkhany and 87 other Finance Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a financial professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Manal Elkhoshkhany Your Own Question
Manal Elkhoshkhany
Manal Elkhoshkhany
Manal Elkhoshkhany, Tutor
Category: Finance
Satisfied Customers: 9,999
9,999 Satisfied Customers
Experience: More than 5000 online tutoring sessions.

Manal Elkhoshkhany is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,609 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,222 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

9,999 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
For JKCPA: John Inc., a company whose stock is publicly traded,
For JKCPA: John Inc., a company whose stock is publicly traded, provides a noncontributory defined benefit pension plan for its employees. The company's actuary has provided the following information … read more
JKCPA
JKCPA
CPA
Bachelor's Degree
844 satisfied customers
For JKCPA: The following information pertains to the 2001
For JKCPA: The following information pertains to the 2001 activity of Gate Corp's defined pension plan: Service cost 300,000 Return on Plan assets 80,000 Interest cost on pension benefit obligation 16… read more
JKCPA
JKCPA
CPA
Bachelor's Degree
844 satisfied customers
E20-9 Pension Expense and Liability Pitchford Company adopted
E20-9 Pension Expense and Liability Pitchford Company adopted a defined benefit pension plan on January 1, 2010, at which time it awarded retroactive benefits to its employees. The following informati… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
1. Interperiod tax allocation would not be required when a.
1. Interperiod tax allocation would not be required when a. costs are written off in the year of the expenditure for tax purposes but capitalized for accounting purposes. b. statutory (or percentage) … read more
Johnmark1900
Johnmark1900
Finance Manager
Chartered Accountant
24 satisfied customers
1. Recognition of tax benefits in the loss year due to a loss
1. Recognition of tax benefits in the loss year due to a loss carryforward requires Answer the establishment of a deferred tax liability. the establishment of a deferred tax asset. the establishment o… read more
JKCPA
JKCPA
CPA
Bachelor's Degree
844 satisfied customers
Gruber enterprises started its defined benefit pension plan
Gruber enterprises started its defined benefit pension plan on January 1, year 1. By the beginning of year 3, the company had accumulated $ 300,000 in pension plan asset's and was already making benef… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
barrel corporation had service and interest cost of $ 50,000
barrel corporation had service and interest cost of $ 50,000 related to its defined pension plan for the year ended Dec 31, year 7. the company's for unrecognized prior service cost was $ 200,000 at D… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
Gruber enterprises started its defined benefit pension plan
Gruber enterprises started its defined benefit pension plan on January 1, year 1. By the beginning of year 3, the company had accumulated $ 300,000 in pension plan asset's and was already making benef… read more
Patrick O. Oswald
Patrick O. Oswald
Master\u0027s Degree
14 satisfied customers
Barrel corporation had service and interest cost of $ 50,000
Barrel corporation had service and interest cost of $ 50,000 related to its defined pension plan for the year ended Dec 31, year 7. the company's unrecognized prior service cost was $ 200,000 at Dec 3… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
1) Carter Components is computing the components of its pension
1) Carter Components is computing the components of its pension expense for the year ended December 31, 20X2. Carter has calculated that is service cost is $60,000 and has computed interest cost as $4… read more
Johnmark1900
Johnmark1900
Finance Manager
Chartered Accountant
24 satisfied customers
Which of the following are definite indicators of an accept
Which of the following are definite indicators of an accept decision for an independent project with conventional cash flows? I. positive net present value II. profitability index greater than zero II… read more
Haseeb
Haseeb
Cost and Management Accountant
46 satisfied customers
1) A Corporation has the following pension information for
1) A Corporation has the following pension information for the year ended December 31,2006: Service cost $225000, Contributions to the plan $240000, Actual return on plan assets $210000, Projected ben… read more
Amol Srivastava
Amol Srivastava
Master's Degree
446 satisfied customers
FOR BUSINESS TUTOR 1. Generally accepted accounting principles
FOR BUSINESS TUTOR 1. Generally accepted accounting principles require that certain lease agreements be accounted for as purchases. The theoretical basis for this treatment is that a lease of this typ… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
Ohlman Inc maintains a defined benefit plan for its ...
Ohlman Inc maintains a defined benefit plan for its employees. As of Dec 31, 08, the market value of the plan asset is less than the accumulated benefit obligation. The projected benefit obgligation e… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
The following pertains to Mellon Co pension plan Acturial ...
The following pertains to Mellon Co pension plan: Acturial estimate of projected benefit obligation at $72,000. Assumed discount rate 10%, Service Cost '08 $18,000; Pension benefits paid in '08 $15,00… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Gillium Inc has a defined-benefit pension plan covering its ...
Gillium Inc has a defined-benefit pension plan covering its 50 employees. Gillium agrees to amend its pension benefits. As a result the projected benefit obligation increased by $1,500,000. Gillium de… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
According to the FASB, immediate recognition of a liability ...
According to the FASB, immediate recognition of a liability (referred to as the minimum liability) is required when the accumulated benefit ogligation exceeds the fair value of plan assets. Conversely… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Presented below is pension information related to Tyler, ...
Presented below is pension information related to Tyler, Inc for the year 2008: Service cost $72,000; Interest on projected oblogation $54,000; Interest of vested benefits $24,000; Amortized of prior … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x