accy 113 exam 1.docx - ACCY 113 EXAM 1 s18 Your name...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCY 113 / EXAM 1 / s18 Your name _____________________________ Instructions: Legibly write your name in (1) in the space above, (2) on your scantron. There are 15 multiple choice questions @ 4 pts each, and 3 open-ended questions totaling 40 pts. Do all your work in the exam booklet. There is no penalty for guessing. Show your work on the open-ended . Mark your scantron lightly and erase completely; if carbon is left in more than one slot the question is marked incorrect. Assume a calendar fiscal year (Dec. 31) in all cases. Please do not look at other exams. MULTIPLE CHOICE 1. For which type of pension plan and other postemployment plan is accrual accounting required? DC = defined contribution pension plan; DB = defined benefit pension plan; OPEB = other postemployment benefit plan. a. DB only b. DB and OPEB only c. DC, DB and OPEB * d. DC and DB only e. OPEB only 2. For defined benefit pension plans, which event affects both PBO and plan assets equally? a. recognition of pension expense b. positive return on plan assets c. annual funding contribution d. payments to retirees * e. there is no such event 3. Why is interest cost a component of pension expense for a defined benefit pension plan? a. it is the amount by which the pension fund must grow for the year to maintain funded status b. plan assets are measured at fair value c. it is the total increase in PBO for a period d. it is the amount of interest that must be included in the annual funding contribution e. PBO is an unpaid liability which increases with interest as time passes * 4. Both expected return (ER) and actual return (AR) on plan assets play a role in accounting for defined benefit pension plans. Choose the correct statement. a. ER is used both as component 3 of pension expense, and in computing ending plan assets at fair value b. AR is used both as component 3 of pension expense, and in computing ending plan assets at fair value c. ER is used as component 3 of pension expense, and AR is used in computing ending plan assets at fair value *
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
d. AR is used as component 3 of pension expense, and ER is used in computing ending plan assets at fair value 5. Choose the correct statement about defined benefit pension plan assets (the pension fund).
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern