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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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  1. 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.

 

____   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.

True and false questions.... 

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