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35 Cards in this Set
- Front
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c. Profit-sharing and bonuses payable in more than twelve months after the end of the reporting period |
Short-term employee beneflts include all, except a. Wages, salaries and social security contributions. b. Short-term compensated absences. c. Profit-sharing and bonuses payable in more than twelve months after the end of the reporting period d. Nonmonetary benefits, such as medical care, housing, car and free and subsidized goods |
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d. Short term employee benefit obligations are measured on a discounted basis. |
Which of the following is not a characteristic of short term employee benefits? a. No actuarial assumptions are required to measure the benefit obligation. b. There is no possibility of any actuarial gain or loss. c. Short-term employee benefits by definition are payable no later than twelve months after year-end d. Short term employee benefit obligations are measured on a discounted basis. |
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a. Accumulating and vesting |
These are compensated absences that are carried forward and can be used in future periods and the employees are entitled to a cash payment for unused entitlement on leaving the entity. a. Accumulating and vesting b. Accumulating and nonvesting c. Nonaccumulating and vesting d. Nonaccumulating and nonvesting |
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c. Payment of the obligation will require the use of current assets. |
Which is not required for the recognition of a liability for compensated absences?
a. The amount of the obligation must be estimable. b. Payment of the obligation must be probable. c. Payment of the obligation will require the use of current assets. d. The compensation is vested. |
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d. Paid time off |
What are compensated absences? a. Unpaid time off b. A form of healthcare c. Payroll deductions d. Paid time off |
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a. Are employee benefits that are not conditional on future employment. |
The vested benefits
a. Are employee benefits that are not conditional on future employment. b. Are benefits to be paid to the retired employees in the current period. c. Are benefits to be paid to the retired employees to the subsequent year. d. Are benefits accumulated in the hands of a trustee. |
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a. Benefits that are not expected to be settled within twelve months after the end of the reporting period. |
Which statement best describes "other long-term employee benefits"? a. Benefits that are not expected to be settled within twelve months after the end of the reporting period. b. Benefits that are expected to be settled within twelve months after the end of the reporting period. c. Benefits payable as a result of an entity's decision to terminate an employee's employment before the normal retirement date. d. Benefits which are payable after completion of employment. |
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a. Termination benefits |
These are employee benefits that are payable as a result of an entity's decision to terminate an employee's employment before the normal retirement date, or an employee's decision to accept an offer of benefits in exchange for termination of employment. a. Termination benefits b. Short-term employee benefits c. Other longterm employee benefits d. Postemployment employee benefits |
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a. A short-term employee benefit |
Employees are each entitled to 20 days of paid holiday leave per year. Unused holiday leave cannot be carried forward and does not vest. What is the holiday leave? a. A short-term employee benefit b. A postemployment benefit c. Other long-term employee benefit d. A termination benefit |
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c. Other long-term employee benefit |
Employees are entitled to 10 days holiday leave per year. Unused holiday leave may be carried forward until the employee leaves employment at which time the entity will pay the employee for all unused holiday leave. What is the holiday leave?
a. A short-term employee benefit b. A postemployment benefit c. Other long-term employee benefit d. A termination benefit |
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d. A termination benefit |
An entity made a public announcement of a commitment to a voluntary redundancy plan. The entity has an obligation to pay employees that choose voluntary redundancy a lump sum equal to twice their gross annual salary. What is the obligation to pay employees that choose voluntary redundancy? a. A short-term employee benefit b. A postemployment benefit c. Other long-term employee benefit d. A termination benefit |
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c. Other long-term employee benefit |
A profit-sharing plan requires an entity to pay a specified proportion of the cumulative profit for a iive-year period to employees who servethroughout the five-year Pperiod. What is the profit-sharing plan? a. A short-term employee benefit b. A postemployment benefit c. Other long-term employee benefit d. A termination benefit |
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a. Employee benefits |
These are all forms of consideration given by an entity in exchange for services rendered by employees. a. Employee benefits b. Employee compensation c. Fringe benefits d. Salaries and wages |
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b. Postemployment employee benefits |
These are employee benefits Which are payable after completion of employment. a. Short-term employee benefits b. Postemployment employee benefits c. Other long-term employee benefits d. Termination benefits |
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a. Long-term disability benefits |
Postemployment employee benefits include all of the following, except a. Long-term disability benefits b. Retirement benefits, such as pensions c. Postemployment life insurance d. Postemployment medical care |
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b. Defined contribution plan |
It is a benefit plan under which an entity pays a fixed contribution into a separate fund and will have no legal or constructive obligation to pay further contribution if the fund becomes insufficient to pay employee benefits. a. Postemployment benefit plan b. Defined contribution plan c. Defmed benefit plan d. Employer plan |
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d. All of these statements are true about a defined contribution plan. |
Which statement is true concerning the recognition and measurement of a defined contribution plan? a. The contribution shall be recognized as expense in the period it is payable. b. Any unpaid contribution at the end of the period shall be recognized as accrued liability. c. Any excess contribution shall be recognized as prepaid expense. d. All of these statements are true about a defined contribution plan. |
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c. The defined benefit plan must be fully funded. |
Which statement is incorrect concerning the recognition and measurement of a defined benefit plan? a. Actuarial assumptions are required to measure the obligation and expense and there is a possibility of actuarial gains and losses. b. The obligation is measured on a discounted basis. c. The defined benefit plan must be fully funded. d. The expense recognized for a defmed benefit plan is not necessarily the amount of contribution due for the period. |
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a. Defined contribution plan |
When an entity pays insurance premiums to fund a postemployment benefit plan and the entity has no legal or constructive obligation, on the policy, the postemployment benefit plan shall be treated as a. Defined contribution plan b. Defined benefit plan c. Either defined contribution or defined benefit plan d. Neither defined contribution nor defmed benefit plan |
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d. Are defined by all of these. |
Vested benefits a. Usually require a certain minimum number of years of service. b. Are those that the employee is entitled to receive even if fired. c. Are not contingent upon additional servce under the plan. d. Are defined by all of these. |
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d. Contribution to the plan |
The components of defined benefit cost include all except a. Service cost b. Net interest c. Remeasurements d. Contribution to the plan |
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d. Net interest |
The service cost of a defined benefit plan comprises all, except a. Current service cost b. Past service cost c. Gain or loss on settlement d. Net interest |
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d. Remeasurements |
Which of the following components of defined benefit cost shall be recognized through other comprehensive income? a. Current service cost b. Past service cost c. Net interest d. Remeasurements |
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a. Current service cost |
It is the increase in the present value of the defined benefit obligation resulting from employee service in the current period a. Current service cost b. Interest expense c. Past service cost d. Remeasurement |
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c. Past service cost |
It is the increase in the present value of the defined benefit obligation for employee service in prior periods: resulting from a plan amendment or curtailment. a. Current service cost b. Net interest c. Past service cost d. Employee benefit cost |
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d. Expensed in the period the plan is amended. |
When an entity amends a pension plan, past service cost should be a. Treated as a prior period error. b. Amortized over the service period of employees. c. Recorded in other comprehensive income d. Expensed in the period the plan is amended. |
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c. The difference between interest expense on defined benefit liability and interest income on the fair value of plan assets |
What is the meaning of "net interest" in relation to a defined benefit cost? a. Interest expense on defined benefit liability b. Interest income on the fair value of plan assets c. The difference between interest expense on defined benefit liability and interest income on the fair value of plan assets d. Interest expense on defined benefit liability less tax |
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c. Both assets held by a long-term employee benefit fund and qualifying insurance policy |
Which of the following should be included in plan assets? a. Assets held by a long-term employee benefit fund b. Qualifying insurance policy c. Both assets held by a long-term employee benefit fund and qualifying insurance policy d. Neither assets held by a long-term employee benefit fund nor qualifying insurance policy |
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a. Qualifying insurance policy |
It is an insurance policy the proceeds from which are used to pay only employee benefits. a. Qualifying insurance policy b. Unqualified insurance policy c. Ordinary insurance policy d. Inclusive insurance policy |
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b. Includes interest, dividends and change in the fair value of the plan assets during the year. |
The return on plan assets a. Is equal to the change in the fair value of the plan assets during the year. b. Includes interest, dividends and change in the fair value of the plan assets during the year. c. Is equal to the discount rate times the fair value of the plan'assets at the beginning of the period. d. Is equal to the expected rate of return times the fair value of plan assets at the beginning of the period. |
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c. Requires an employer to contribute a certain sum each period based on the formula |
In a defined contribution plan, a formula is used that
a. Defines the benefits that the employee will receive b. Ensures that pension expense is funded c. Requires an employer to contribute a certain sum each period based on the formula d. Ensures that employers are at risk to make sure funds are available at retirement |
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b. Defines the benefits that the employee will receive at the time of retirement. |
In a defined benefit plan, a formula is used that a. Requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee. b. Defines the benefits that the employee will receive at the time of retirement. c. Requires cash funding for the plan. d. Defines the contribution the employer is to make. |
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b. Reflects the rate at which pension benefits could be effectively settled. |
The interest on the defined benefit obligation a. Reflects the incremental borrowing rate of the employer. b. Reflects the rate at which pension benefits could be effectively settled. c. Is the same as the expected return on plan assets. d. May be stated implicitly or explicitly when reported. |
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b. Includes interest, dividends and changes in the fair value of plan assets. |
The return on plan assets a. Is equal to the change in the fair value of the plan assets. b. Includes interest, dividends and changes in the fair value of plan assets. c. Is equal to the expected rate of return. d. Is excluded in determining fair value of plan assets |
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d. Paid time off |
What are compensated absences? a. Unpaid time off b. A form of healthcare c. Payroll deduction d. Paid time off |
