Financial 6 PassMaster Questions - Becker CPA Review,...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Becker CPA Review, PassMaster Questions Lecture: Financial 6 1 2009 DeVry/Becker Educational Development Corp. All rights reserved. CPA PassMaster QuestionsFinancial 6 Export Date: 10/30/08 Becker CPA Review, PassMaster Questions Lecture: Financial 6 2 2009 DeVry/Becker Educational Development Corp. All rights reserved. Pension Plans CPA-00679 Type1 M/C A-D Corr Ans: D PM#1 F 6-01 1. CPA-00679 FARE R02 #8 Page 19 Which of the following disclosures is not required of companies with a defined-benefit pension plan? a. A description of the plan. b. The amount of pension expense by component. c. The weighted average discount rate. d. The estimates of future contributions. CPA-00679 Explanation Choice "d" is correct. Although pension accounting has extensive disclosures, projections of future contributions into a pension plan are not required. "a", "b", and "c" are required disclosures. CPA-00681 Type1 M/C A-D Corr Ans: C PM#2 F 6-01 2. CPA-00681 FARE R99 #13 Page 9 Jan Corp. amended its defined benefit pension plan, granting a total credit of $100,000 to four employees for services rendered prior to the plan's adoption. The employees, A, B, C, and D, are expected to retire from the company as follows: "A" will retire after three years. "B" and "C" will retire after five years. "D" will retire after seven years. What is the amount of prior service cost amortization in the first year? a. $0 b. $5,000 c. $20,000 d. $25,000 CPA-00681 Explanation Choice "c" is correct. Amortization of unrecognized prior service cost is calculated by assigning an equal amount of the cost to the future periods of service of each employee at the date of amendment to the plan. The average service life of the four employees is five years. $100,000 5 years = $20,000 CPA-00699 Type1 M/C A-D Corr Ans: C PM#4 F 6-01 3. CPA-00699 Th Nov 93 #30 Page 8 Visor Co. maintains a defined benefit pension plan for its employees. The service cost component of Visor's net periodic pension cost is measured using the: a. Unfunded accumulated benefit obligation. b. Unfunded vested benefit obligation. c. Projected benefit obligation. d. Expected return on plan assets. CPA-00699 Explanation Choice "c" is correct. Service cost represents the increase in the projected benefit obligation resulting from employees' services rendered during the year. SFAS 87 para. 264 Choice "a" is incorrect. The unfunded accumulated benefit obligation is not related to service cost calculations. Becker CPA Review, PassMaster Questions Lecture: Financial 6 3 2009 DeVry/Becker Educational Development Corp. All rights reserved. Choice "b" is incorrect. The unfunded vested benefit obligation is not related to service cost calculations....
View Full Document

This note was uploaded on 09/25/2011 for the course ACCOUNTING AC591 taught by Professor W during the Spring '11 term at Keller Graduate School of Management.

Page1 / 70

Financial 6 PassMaster Questions - Becker CPA Review,...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online