Qestion 1 a) Many loan agreements have financial covenants that rely on: Multiple Choice A. floating GAAP. B. fixed GAAP. C. flexible GAAP. D. regulatory accounting procedures (RAP).
Q: Which of the following statements is true? Select one: Profit sharing plans may not offer…
A: Pension plans are introduced by the government or the employer for the welfare of employees after…
Q: The Employee Retirement Income Security Act (ERISA) requires that companies fund defined-benefit…
A: The post-retirement benefits will be benefits, other than annuity disseminations, paid to…
Q: Qualified plan assets are placed into and held by a trust. What can the trust distribute to the…
A: The definition of a qualified trust for purposes of this section is a trust established or organized…
Q: Interest cost included in pension expense recognized for a period by an employer sponsoring a…
A: Pension expense refers to the cost incurred by a company for providing retirement benefits to its…
Q: The following data pertains to a defined benefit (DB) pension plan: 25,000 10% defined benefit…
A: Net benefit obligation is the difference between the present benefit obligation and the fair value…
Q: Which of the following would not be reported on a plan's statement of fiduciary net position? A.)…
A: Lets understand the basics. Statement of fiducary net position is similar like a statement of…
Q: Which of the following statements regarding a money purchase plan is (are) correct? I. The employee…
A: Retirement plans are the plans that are established to provide sufficient funds to an employee after…
Q: NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ in millions) Changes in projected benefit obligation:…
A: This subject matter refers to the accounting and reporting of worker pension blessings via groups in…
Q: Matching Federal Debt Collection Practice Act (FDCPA) Federal Credit Billing Act (FCBA) Federal…
A: The financial industry is governed by several federal laws that aim to protect consumers' rights and…
Q: lease answer the following questions about defined benefit pension plans: Companies with defined…
A: Introduction: Pension plan: Pension plan can also be defined as retirement plan in which the…
Q: 1. Plans qualifying for preferential tax treatment must meet minimum participation and vesting…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Exercise 17-10 (Algo) Determine pension expense Abbott and Abbott has a noncontributory, defined…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: Which of the following is not considered by an actuary when determining the annual contribution to a…
A: The correct answer with explanations are as follows.
Q: Look at Note 31.2, “Retirement Benefits.” AF incorporates estimates regarding staffturnover, life…
A:
Q: ERISA (Pension Reform Act of 1974) provides guidance for actual return on plan assets minimum…
A: ERISA (Employee retirement security act) was enacted with a view to protect the interests of…
Q: pension
A: Introduction A cash balance pension plan is a plan where the participating employees would receive a…
Q: Question text 16 A pension liability is reported when Select one: а. the accumulated benefit…
A: As per IAS 19 Employee Benefits, Pension liability is the obligation with respect to pension plans.…
Q: Access the FASB Accounting Standards Codification at the FASB website…
A: Accrued Liabilities: Accrued liabilities are those expenses that are incurred but not yet paid.…
Q: Amounts that come from accounts of unvested employees that can be directed/contributed to the…
A: Unvested stocks are those stocks that are set aside for the employees which has not been vested due…
Q: Determine whether each of the following independent statements best applies to a defined…
A: Tax: A tax is a compulsory charge or a levy imposed upon a taxpayer by a government organization…
Q: Match term to the correct definition. The balance on which interest is paid.…
A: Definition with their correct matches and explanations are provided as below: Definition…
Q: Net interest cost is a component of pension expense under IFRS. How is net interest cost calcul…
A: Net Interest cost is calculated by taking the difference between interest expense on defined benefit…
Q: All of the following are true of known liabilities except: rev: 10_02_2019_QC_CS-184070 Top of…
A: liabilities are considered as legal financial debt or obligation that arises during the course of…
Q: Vouchers payable denote: a. A future liability estimated when order is made b. Amount due to…
A: Since multiple questions are asked, we will answer the first full question for you. You may repost…
Q: Describe what factors contribute to the pension benefit obligation. Discuss the effect of the…
A: A projected benefit obligation (PBO) is an actuarial calculation of how much money a firm will…
Q: A deposit premium can be defined as The initial payment schedule required to institute a premium…
A: An insurance contract is a contract where the insured pays the insurer premiums for coverage…
Q: The FHA implements its programs with which of the following procedures? Providing government…
A: Federal Housing Administration: The FHA's principal purpose was to protect home mortgage loans…
Q: etermine Douglas-Roberts's pension expense for 2021. 2. Prepare the appropriate journal entries to…
A: Plan assets are those assets which are held for the sole purpose of providing benefits to the…
Q: Ma1. Assume the below information about a firm’s defined benefit pension plan: Pension Fund…
A: Pension fund beginning balance cash funding by the actual investment income payments to retires…
Q: 1. Which of the following statements typifies defined contribution plans? Investment risk is borne…
A: A defined contribution plan is a type of retirement plan in which the employer, and sometimes the…
Q: The cash benefits provided by Social Security come from: Question 13 options:…
A: The objective of the question is to identify the source of cash benefits provided by Social…
Q: Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ) Required:…
A: Accrued Liabilities: Accrued liabilities are those expenses that are incurred but not yet paid.…
Q: Question 6 Select the appropriate response Why are dividends from a mutual insurer not subject to…
A: Dividend -Retained earnings are the profits a firm makes and carry over into the next phase of…
Q: Which of the following correctly describes defined benefit (DB) pension plans? A-A typical example…
A: Defined benifit is also written as DB. It is the pension plan in which the employee will receive the…
Q: Current accounting standards require that the discount rate used for pension plans be: Multiple…
A: As per IAS 19 discount rate used for pension plans be considered as following
Q: Which of the following statements regarding debt service funds is true?
A: A debt service fund is a type of governmental fund used to account for the accumulation of resources…
Q: Less: Retiree benefits End of 2021 Less: Retiree benefits (40) $653 End of 2021 (40) $ 498 Required:…
A: Defined Benefit Obligation Defined benefit obligation which is considered to be one of the oldest…
Q: The Employee Retirement Income Security Act (ERISA) was established to provide: Question 16…
A: The Employee Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for…
Q: (Basic Terminology) In examining the costs of pension plans, Helen Kaufman, CPA, encounters certain…
A: a. 1 The service tenure of the employee is matched with the addition of benefits to the pension…
Q: Question text Dickson Manufacturing Corp., a company reporting under IFRS, has a defined benefit…
A: Plan assets means investment held for benefit of employees inrelation to defined benefit plans.
Q: Which of the following is a borrower's right provided by the Mortgage Bankers Association that is…
A: The mortgage bankers association (MBA) is referred to as the national association which mainly…
Q: Question 17: Which of these is NOT a regulation set forth within ERISA? Answer: A. Employees must be…
A: ERISA refers the Employee Retirement Income Security Act which is a federal law that sets minimum…
Q: insured who wants to verify the deductible on Section I of their Homeowners policy should look at…
A: insurance policy is considered to be contract between the policy holder and the insurance this…
Q: S1: Under a defined contribution plan, the amount of a participant’s future benefits is determined…
A: As per IAS 26 Accounting and Reporting by Retirement Benefit Plan the two given statements are of…
Q: period? wer. t be deposted nto the brokeragers commission urt within 24hours of recept Funds must be…
A: Real estate and brokers act refers to the act which specifies all the desired set of rules and…
Q: FASB ASC 715–60: Compensation–Retirement Benefits–Defined Benefit Plans–Other Postretirement…
A: Temporary DifferenceTemporary difference refers to the difference of one income recognized by the…
Q: Vested benefits a. Usually require a certain minimum number of years of service b. Are those that…
A: As per IAS 19 Vested benefits are those benefits provided to employment if they work for certain…
Qestion 1
a) Many loan agreements have financial covenants that rely on:
Multiple Choice
A. floating GAAP.
B. fixed GAAP.
C. flexible GAAP.
D. regulatory accounting procedures (RAP).
b) With respect to executive compensation, the Dodd-Frank Act requires that shareholders:
Multiple Choice
A. vote on executive compensation at least once every three years.
B. vote on executive compensation every fiscal period.
C. determine the annual executive compensation package for key executives.
D. not discuss any aspects of executive compensation with-non shareholders.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Refer to the situation described below Assume Electronic Distribution prepares its financial statements according to IFRA. Also, assume that 10% is the current interest rate on high- quality corporate bonds. Sin millions PBO balance January 1 480 Plan assets balance January 1 300 Service cost 75 Interest cost 45 Gain from change in an actuarial assumption 22 Benefits paid (36) Actual return on plan assets 20 Contributions 2021 60 Calculate the net pension cost for 2021, separating its components into appropriate categories for reporting. Prepare the journal entries to record (a) the components of net pension cost, (b)gains or losses, (c) past service cost, (d) funding, and (e) payment of benefits for 2021. What amount will Electronic Distribution report in its 2021 balance sheet as a net pension asset or net pension liability?Codification Research CaseMonat Company has grown rapidly since its founding in 2004. To instill loyalty in its employees, Monat is contemplating establishment of a defined benefit plan. Monat knows that lenders and potential investors will pay close attention to the impact of the pension plan on the company's financial statements, particularly any gains or losses that develop in the plan. Monat has asked you to conduct some research on the accounting for gains and losses in a defined benefit plan.InstructionsIf your school has a subscription to the FASB Codification, log in and prepare responses to the following. Provide Codification references for your responses.a. Briefly describe how pension gains and losses are accounted for.b. Explain the rationale behind the accounting method described in part (a).c. What is the related pension asset or liability that will show up on the balance sheet? When will each of these situations occur?Refer to the financial statements and related disclosure notes of Microsoft Corporation (www.microsoft.com).Required:1. What type of pension plan does Microsoft sponsor for its employees? Explain.2. Who bears the “risk” of factors that might reduce retirement benefits in this type of plan? Explain.3. Assuming that employee and employer contributions vest immediately, suppose a Microsoft employee contributes $1,000 to the pension plan during her first year of employment and directs investments to a bondmutual fund. If she leaves Microsoft early in her second year, after the mutual fund’s value has increased by2%, how much will she be entitled to roll over into an Individual Retirement Account (IRA)?4. How did Microsoft account for its participation in the pension plan in fiscal 2015?
- during january mary dolan, a subcontractor, prodived pet care services to julie's honey for three fridays in janaury, totaling 24 hours at $10 per hour. ck overlooked recording this subcontractor expense since mary had not been paid for these services yet. so at january 31, an adjusting entry is needed to record subcontractor expense that will be paid later. in the future, ck is hoping that the qbo time tracking will assist in avoiding these types of oversights going forward. What is the journal entry needed?Mulitple choice question When are liabilities recognized for the federal Social Security program? Select one: a. When benefits are paid to the recipients b. When benefits are earned by the recipients c. When benefits are due and payable at the end of a reporting period d. When the social security trust fund receives cash from employees and employersActuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $4 million per year) Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2024 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2024 Beginning of 2025 Service cost PBO $ 300 48 Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2025 24 (2) (20) $ 350 PBO $ 350 38 28 5 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) (16) Beginning of 2024 Return on plan assets, 7.5% (10% expected) $ 405 Cash contributions Less: Retiree benefits End of 2024 Beginning of 2025 Return on plan assets, 15% (10% expected) $…
- Indicate by letter whether each of the events listed below increases (I), decreases (D), or has no effect (N) on an employer's projected benefit obligation. Events 1. Interest cost. 2. Amortization of prior service cost. 3. A decrease in the average life expectancy of employees. 4. An increase in the average life expectancy of employees. 5. A plan amendment that increases benefits is made retroactive to prior years. 6. An increase in the actuary's assumed discount rate. 7. Cash contributions to the pension fund by the employer. 8. Benefits are paid to retired employees. 9. Service cost. 10. Return on plan assets during the year are lower than expected. 11. Return on plan assets during the year are higher than expected.In accounting for a defined-benefit pension plan __the expense recognized each period is equal to the cash contribution. ___the liability is determined based upon known variables that reflect future salary levels promised to employees. __the employer's responsibility is simply to make a contribution each year based on the formula established in the plan. __an appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised.Permanent adjustments on Schedule M-1 (Form 1065) include: Premiums paid for life insurance policies on key employees, lobbying expenses, and tax exempt interest. Start up costs, depletion, and inventory costs. Section 179 expensing, uniform capitalization adjustments, and expenses related to tax exempt income. Depreciation, amortization, and depletion.
- Indicate by letter whether each of the events listed below increases (I), decreases (D), or has no effect (N) on an employer's periodic pension expense in the year the event occurs. Events 1. Interest cost. _____ 2. Amortization of prior service cost---AOCI. ______ 3.Excess of the expected return on plan assets over the actual return _____ 4. Expected return on plan assets. _____ 5. A plan amendment that increases benefits is made retroactive to prior years. ____ 6. Actuary's estimate of the PBO is increased.…A defined benefit plan is one in which: A.) The employer promises specified payments to employees on their retirement. B.)The specific provisions are defined by the Internal Revenue Code. C.) The specific provisions are defined by the Uniform Code of Retirement Plans. D.) The employee can specify the mix of benefits (e.g., health, pension, insurance) that will be received on retirement.QUESTION 20 Which proposal for ensuring that sufficient funds will be available to provide Social Security benefits to future retirees does the AARP find least objectionable? Raise the maximum income cap on which workers and employers are taxed. Provide more generous annual cost of living increases. Privatize Social Security. Lower immigration restrictions to increase the number of workers paying into the Social Security system.