A pension fund _____ accepts employer contributions, invests those contributions, and
pays benefits to retired employees. - ✔✔ANSW✔✔..trustee
A pension spreadsheet typically shows the relationship between which of the following
elements of a pension plan (select all that apply):
unrealized gains and losses on AFS securities
expected return on plan assets
deferred gains and losses on derivative instruments
service cost
payments to retirees - ✔✔ANSW✔✔..expected return on plan assets
service cost
payments to retirees
AOCI is reported on
the statement of cash flows.
the income statement.
the balance sheet. - ✔✔ANSW✔✔..the balance sheet.
Bart Company has a PBO balance of $400 million and a plan assets balance of $500
million. Bart will report
a $100 million liability.
a $100 million asset.
a $400 million liability and a $500 million asset. - ✔✔ANSW✔✔..a $100 million asset.
Choose the best answer regarding the usefulness of a pension spreadsheet.
A pension spreadsheet helps the company predict future pension obligations.
A pension spreadsheet shows how pension plan elements interrelate.
,A pension spreadsheet must be presented in the financial statement notes. -
✔✔ANSW✔✔..A pension spreadsheet shows how pension plan elements interrelate.
Companies with sizeable unrecognized pension costs will exhibit a relatively high _____
earnings component.
temporary and permanent
permanent
temporary - ✔✔ANSW✔✔..temporary
Comprehensive income is equal to:
current period net income.
all changes in equity other than from transactions with owners.
all changes in equity during the current period.
the sum of all changes in equity other than those from transactions with owners. -
✔✔ANSW✔✔..all changes in equity other than from transactions with owners.
Cook Company revises its pension formula causing an increase in prior service cost.
The original amount was $50 million and the new amount is $60 million. In recording
this revision, Cook will (Select all that apply.)
Cook Company revises its pension formula causing an increase in prior service cost.
The original amount was $50 million and the new amount is $60 million. In recording
this revision, Cook will (Select all that apply.)
Cook Company revises its pension formula related to prior service cost and the
amendment reduces the PBO. In recording this revision, Cook will include (Select all
that apply.)
credit to Prior service cost-OCI.
debit to PBO
credit to plan assets
credit to PBO.
debit to Prior service cost-OCI.
debit to plan assets. - ✔✔ANSW✔✔..credit to Prior service cost-OCI.
debit to PBO
Cook Company revises its pension formula related to prior service cost and the
amendment reduces the PBO. In recording this revision, Cook will include (Select all
that apply.)
debit to Prior service cost-OCI.
debit to PBO
credit to PBO.
credit to plan assets
debit to plan assets.
credit to Prior service cost-OCI. - ✔✔ANSW✔✔..debit to PBO
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