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CHAPTER 20 ACCOUNTING FOR PENSIONS AND POSTRETIREMENT BENEFITS TRUE-FALSE —Conceptual Answer No. Description F 1. Funded pension plan. T 2. Qualified pension plans. F 3. Defined-contribution plan liability. T 4. Defined-benefit plans. T 5. Vested benefit obligation. F 6. Accumulated benefit obligation. F 7. Definition of service cost. T 8. Definition of interest cost. F 9. Recognizing projected benefit obligation. T 10. Prepaid/Accrued Pension Cost balance. F 11. Plan amendment and projected benefit obligation increase. F 12. Years-of-service amortization method. T 13. Expected return and actual return. F 14. Unexpected gains and losses. T 15. Unrecognized Net Gain/Loss account and the corridor. F 16. Amortization of net gains and losses. F 17. Recognizing a minimum liability. T 18. Reporting accrued pension cost and additional liability balances. F 19. Recording Excess of Additional Pension Liability Over Unrecognized Prior Service Cost. T 20. Reconciliation of PBO and fair value of plan assets. MULTIPLE CHOICE —Conceptual Answer No. Description d 21. Factors considered by actuaries. c 22. Process of funding a pension plan. d 23. Accounting problems in pension plans. c 24. Nature of a defined-contribution plan. b 25. Nature of a defined-benefit plan. b S 26. Defined-contribution plan characteristics. a S 27. Accounting for a defined-benefit plan. c S 28. Pension obligation measurement using future salaries. a 29. Definition of accumulated benefit obligation. a 30. Projected benefit obligation as a measure of pension obligation. d 31. Alternative measures of the pension obligation. d 32. Characteristics of vested benefits. d 33. Pension funding and pension expense recognition. a 34. Components of pension expense. c 35. Service cost calculated using future compensation levels. b 36. Settlement interest rates.
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Test Bank for Intermediate Accounting, Twelfth Edition MULTIPLE CHOICE —Conceptual (cont.) Answer No. Description a 37. Nature of plan assets. b 38. Definition of actual return on plan assets. b 39. Prepaid/accrued pension cost. c P 40. Items included in net pension cost. d P 41. Definition of accrued pension cost. a 42. Recognition of prior service costs. c 43. Amortization of prior service costs. b 44. Amortization methods for prior service costs. a S 45. Defined-benefit plan amendment. d S 46. Unexpected gains and losses. b 47. Recording unrecognized gains and losses. a 48. Use of market-related asset values. a 49. Gain or loss caused by a plant closing. c 50. Switch from a defined-benefit plan to a defined-contribution plan. b 51. Recognition of a minimum liability. b 52. Intangible asset—deferred pension cost. a 53. Identification of a balance sheet account. d S 54. Recognition of pension asset. b 55. Disclosures of pension plan information. c 56. Function of Pension Benefit Guaranty Corporation. c *57. Postretirement health care benefits.
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