Sick pay benefits that are related to an employee's services already rendered, whose payment is probable and whose amount can reasonably be estimated, must be accrued and recognized as a current liability if the obligation relates to rights that I. II. No No III. Yes IV. Yes O IV Accumulate III Vest No Yes No Yes

Sick pay benefits that are related to an employee's services already rendered, whose payment is probable and whose amount can reasonably be estimated, must be accrued and recognized as a current liability if the obligation relates to rights that I. II. No No III. Yes IV. Yes O IV Accumulate III Vest No Yes No Yes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following criteria is not required for the recognition of a liability for compensated absences? The amount of the obligation must be estimable. Payment of the obligation will require the use of current assets. Payment of the obligation must be probable. The compensation either evsts with the employee ir can be carried forward to subsequent years.
Determine if this shall result in recognition of liabilities 14.Violation of the terms of a contract; it is less than probable but more than remote that there will be outflow of economic benefits a. yes b. no
Question 13 Pension expense is decreased by: A- Amortization of prior service cost. B- Amortization of net gain. C- Benefits paid to retired employees. D- Prior service cost. O A O B O D
Under IFRS, the amounts of long-term employment benefits, such as paid absences and unrestricted sabbaticals, as well as short-term benefits during employment, such as sick leave and vacation pay, are often estimates that need to be remeasured. How are these remeasurements reflected on the financial statements? O Both are included in other comprehensive income. O Remeasurements of long-term employment benefits are included in other comprehensive income, while remeasurements of short-term benefits are included in net income O Both are included in net income. O Remeasurements of long-term employment benefits are included in net income, while remeasurements of short-term benefits are included in other comprehensive income.
Determine if this shall result in recognition of liabilities 5. signing of employment contract by a new employee a. yes b. no
Which of the following is/are true with regard to accounting for short-term employee benefits? Unpaid short-term benefits are reported as accrued under current liabilities at an undiscounted value. If the payment exceeds the undiscounted amount of the benefits, the excess is reported as prepayment under current assets. The benefits are reported as an expense under profit or loss, unless another standard requires or permits the cost of the benefits to be capitalized. Group of answer choices Only statement 1. All statements are true. Only statement 3. Only statement 2.
Under what circumstances should an employer accumulate a cost and the associated obligation for an employee's future absence compensation? What role does firm tradition and practice have in the accrual decision?
If pension expense recognized in a period exceeds the current amount funded by the employer, what kind of account arises, and how should it be reported in the financial statements? If the reverse occurs'that is, current funding by the employer exceeds the amount recognized as pension expense'what kind of account arises, and how should it be reported?
WCB premiums are deducted from an employee's pay. Question 5 options: True False
O C. Waqf O D. Ta'awun 29. 'Premium' in takaful is considered as O A. The price for transferring risks and payment for protection O B. Segregation of risks from the insured to the insurer O C. Absolute protection from illness, accidents and so forth O D. Voluntary contribution to participate in protecting each other against defined loss 30. Which of the following is TRUE under the pillars of a Takaful contract? *
The following information pertains to X's defined benefit pension plan: Prepaid pension cost at the start of the year Current service cost Interest expense related to plan Actual income on plan assets P2,000 19,000 38,000 22,000 52,000 40,000 Past service cost Current year contribution 3) In its current year Balance sheet, what amount should X report as pension cost? a. 45,000 b. 49,000 C. 67,000 d. 87,000