In a defined benefits retirement plan, the employer bears the investment risks in funding a future retirement income benefit. ____ 12. The cost of replacing an engine in a truck is an example of ordinary maintenance that should be expensed instead of capitalized. ____ 13. For proper matching of revenues and expenses, the estimated cost of fringe benefits must be recognized as an expense of the period during which the employee earns the benefits.
In a defined benefits retirement plan, the employer bears the investment risks in funding a future retirement income benefit. ____ 12. The cost of replacing an engine in a truck is an example of ordinary maintenance that should be expensed instead of capitalized. ____ 13. For proper matching of revenues and expenses, the estimated cost of fringe benefits must be recognized as an expense of the period during which the employee earns the benefits.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- In a defined benefits retirement plan, the employer bears the investment risks in funding a future retirement income benefit.
____ 12. The cost of replacing an engine in a truck is an example of ordinary maintenance that should be expensed instead of capitalized.
____ 13. For proper matching of revenues and expenses, the estimated cost of
____ 14. Medicare taxes are paid by both the employee and the employer.
____ 15. Costs associated with normal research and development activities should be treated as intangible assets.
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