CH 20 - ACCT 201B

1. 1Vested benefits

   1. Ausually require a certain minimum number of years of service.
   2. Bare those that the employee is entitled to receive even if fired.
   3. Care not contingent upon additional service under the plan.
   4. Dare defined by all of these answers.
2. 2The computation of pension expense includes all the following except

   1. Aservice cost component measured using current salary levels.
   2. Binterest on projected benefit obligation.
   3. Cexpected return on plan assets.
   4. Damortization of prior service cost.
3. 3The actual return on plan assets

   1. Ais equal to the change in the fair value of the plan assets during the year.
   2. Bincludes interest, dividends, and changes in the fair value of the fund assets.
   3. Cis equal to the expected rate of return times the fair value of the plan assets at the beginning of the period.
   4. Dis equal to interest expenses accrued each year on the projected benefit obligation, just as it does on any discounted debt.
4. 4According to the FASB, recognition of a liability is required when the projected benefit obligation exceeds the fair value of plan assets. Conversely, when the fair value of plan assets exceeds the projected benefit obligation, the Board

   1. Arequires recognition of an asset.
   2. Brequires recognition of an asset if the excess fair value of plan assets exceeds the corridor amount.
   3. Crecommends recognition of an asset but does not require such recognition.
   4. Ddoes not permit recognition of an asset.
5. 5Which of the following statements is true about postretirement health care benefits?

   1. AThey are generally funded.
   2. BThe benefits are well-defined and level in dollar amount.
   3. CThe beneficiary is the retiree, spouse, and other dependents.
   4. DThe benefit is payable monthly.
6. 6.

   

   1. A$600,000
   2. B$816,000
   3. C$828,000
   4. D$696,000
7. 7.

   

   1. A$600,000
   2. B$90,000
   3. C$1,110,000
   4. D$1,200,000
8. 8.

   

   1. A$0.
   2. B$38,370.
   3. C$69,000.
   4. D$50,370.
9. 9.

   

   1. A$600,000.
   2. B$510,000.
   3. C$400,000.
   4. D$310,000.
10. 10.

    

    1. A$64,000.
    2. B$110,000.
    3. C$70,000.
    4. D$68,000.

11. 11.

    

    1. A$66,666.
    2. B$64,000.
    3. C$28,000.
    4. D$24,000.
12. 12.

    

    1. A$4,150,000.
    2. B$3,925,000.
    3. C$3,900,000.
    4. D$3,850,000.
13. 13.

    

    1. A$3,895,000.
    2. B$3,500,000.
    3. C$3,670,000.
    4. D$3,440,000.
14. 14Rathke, Inc. has a defined-benefit pension plan covering its 50 employees. Rathke agrees to amend its pension benefits. As a result, the projected benefit obligation increased by $2,700,000. Rathke determined that all its employees are expected to receive benefits under the plan over the next 5 years. In addition, 10 employees are expected to retire or quit each year. Assuming that Rathke uses the years-of-service method of amortization for prior service cost, the amount reported as amortization of prior service cost in year one after the amendment is

    1. A$540,000.
    2. B$900,000.
    3. C$270,000.
    4. D$720,000.
15. 15.

    

    1. A$941,220.
    2. B$1,062,600.
    3. C$1,150,380.
    4. D$1,540,770.
16. 16.

    

    1. A$714,000.
    2. B$798,000.
    3. C$1,029,000.
    4. D$1,134,000.
17. 17.

    

    1. A$68,880 loss.
    2. B$39,480 gain.
    3. C$33,600 gain.
    4. D$375,480 gain.
18. 18.

    

    1. A$1,083,600.
    2. B$1,092,000.
    3. C$1,186,500.
    4. D$1,400,700.
19. 19.

    

    1. A$26,775.
    2. B$26,250.
    3. C$20,344.
    4. D$17,457.
20. 20.

    

    1. APension liability of $500,000.
    2. BPension liability of $1,200,000.
    3. CPension liability of $1,700,000.
    4. DPension liability of $2,510,000.
21. 21.

    

    1. APension Liability of $600,000.
    2. BPension Asset of $900,000.
    3. CPension Liability of $300,000.
    4. DPension Asset of $300,000.
22. 22.

    

    1. A$5,992,000.
    2. B$6,128,000.
    3. C$6,480,000.
    4. D$6,145,000.
23. 23The fair value of plan assets at December 31, 2021 is

    

    1. A$4,673,000.
    2. B$3,674,000.
    3. C$5,377,000.
    4. D$5,712,000.
24. 24.

    

    1. A$240,000.
    2. B$375,000.
    3. C$420,000.
    4. D$490,000.
25. 25.

    

    1. A$1,100,000.
    2. B$1,260,000.
    3. C$1,300,000.
    4. D$1,164,000.
26. 26.

    

    1. A$90,200.
    2. B$90,000.
    3. C$113,200.
    4. D$98,200.
27. 27Interest cost included in pension expense recognized for a period by an employer sponsoring a defined-benefit pension plan represents the

    1. Ashortage between the expected and actual returns on plan assets.
    2. Bincrease in the projected benefit obligation due to the passage of time.
    3. Cincrease in the fair value of plan assets due to the passage of time.
    4. Damortization of the discount on accumulated OCI (PSC).
28. 28.

    

    1. APension liability of $730,000
    2. BPension asset of $860,000
    3. CPension asset of $130,000
    4. DPension liability of $545,000
29. 29Seigel Co. maintains a defined-benefit pension plan for its employees. At each balance sheet date, Seigel should report a pension asset / liability equal to the

    1. Aaccumulated benefits obligation.
    2. Bprojected benefit obligation.
    3. Caccumulated benefit obligation.
    4. Dfunded status relative to the projected benefit obligation.
30. 30Ohlman, Inc. maintains a defined-benefit pension plan for its employees. As of December 31, 2021, the market value of the plan assets is less than the accumulated benefit obligation. The projected benefit obligation exceeds the accumulated benefit obligation. In its balance sheet as of December 31, 2021, Ohlman should report a liability in the amount of the

    1. Aexcess of the projected benefit obligation over the fair value of the plan assets.
    2. Bexcess of the accumulated benefit obligation over the fair value of the plan assets.
    3. Cprojected benefit obligation.
    4. Daccumulated benefit obligation.
31. 31.

    

    1. A$8,900,000
    2. B$3,500,000
    3. C$2,200,000
    4. D$1,300,000

Description

Quiz on CH 20 - ACCT 201B, created by Orfa Cartagena on 04/04/2021.

Author

Orfa Cartagena

Language

English

Views

6

Tags

accountant

Rating

No ratings yet

Rate this quiz

Rate this quiz

More on Pension and Postretirement Benefit Accounting