Which of the following statements are true? When an employee has rendered service to an entity during a period, the entity shall recognize the contribution payable to a defined contribution plan in exchange for that service: As a liability, after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, an entity shall recognize that excess as an asset, regardless if the prepayment will lead to a reduction in future payments or a cash refund, or not. Group of answer choices Only statement 2. None of the statements are true. Only statement 1. Both statements 1 and 2
Which of the following statements are true? When an employee has rendered service to an entity during a period, the entity shall recognize the contribution payable to a defined contribution plan in exchange for that service: As a liability, after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, an entity shall recognize that excess as an asset, regardless if the prepayment will lead to a reduction in future payments or a cash refund, or not. Group of answer choices Only statement 2. None of the statements are true. Only statement 1. Both statements 1 and 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Which of the following statements are true?
When an employee has rendered service to an entity during a period, the entity shall recognize the contribution payable to a defined contribution plan in exchange for that service:
As a liability, after deducting any contribution already paid.
If the contribution already paid exceeds the contribution due for service before the end of the reporting period, an entity shall recognize that excess as an asset, regardless if the prepayment will lead to a reduction in future payments or a cash refund, or not.
Group of answer choices
Only statement 2.
None of the statements are true.
Only statement 1.
Both statements 1 and 2.
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