Select the best answer.
1. A city's annual required contribution (as distinguished from its pension expenditures) represents the city's
a. Required contribution to a pension trust fund as determined on the accrual basis by an appropriate actuarial method
b. Actual cash contribution to the pension trust fund
c. Required payments to retired employees per the terms of the pension plan
d. Normal cost, as determined by an appropriate actuarial method

2. A city's annual required contribution to a pension trust fund
a. Must be no less than the actual payments to retirees
b. Must consist of normal cost plus an amount for amortizing the pension plan's unfunded actuarial accrued liability
c. Must consist of normal cost plus an amount for amortizing the city's actuarial accrued liability
d. Is the amount that the city should report as its pension expenditure in a governmental fund

3. Per its actuary, Carlin City's annual required pension contribution for a particular year is $2.5 million. Of this amount, $2 million is applicable to employees whose compensation is accounted for in its general fund and $500,000 is applicable to employees whose compensation is accounted for in a utility (enterprise) fund. For that year, the city contributes to the pension plan $1.8 million from its general fund and $450,000 from its utility fund. How much should the city record as an expenditure in its general fund and an expense in its utility fund?
General Fund . Utility Fund
a. $2,000,000 . $500,000
b. $1,800,000 .. $450,000
c. $1,800,000 .. $500,000
d. $2,000,000 . $450,000

4. Assume the same facts as in the previous question. The amount by which the city's total pension liability (net pension obligation) would increase in its government-wide statements is
a. $0
b. $50,000
c. $200,000
d. $250,000

5. The actuarial accrued liability of a plan that provides health benefits to retired employees refers to
a. The difference between the benefit plan's assets and its obligations, computed by an appropriate actuarial method, to current and retired employees
b. The total amount to be paid to current and retired employees computed by an appropriate actuarial method
c. The total amount to be paid to current and retired employees, computed by an appropriate actuarial method, that has been earned by those employees to date
d. The difference between the total amount to be paid to current and retired employees, computed by an appropriate actuarial method, and the amount that has actually been paid to them

6. Which of the following would not be reported on the statement of net fiduciary position of a city's pension plan?
a. Actuarial accrued liability
b. Plan investments at fair value
c. Obligations to retired employees that are past due
d. Contributions receivable from employers

7. Which of the following is a city not required to disclose in its notes or in required supplementary information pertaining to its pension trust fund?
a. Unfunded actuarial accrued liability as a percentage of covered payroll
b. Difference between cost and fair value of plan investments
c. Percentage of annual required contribution actually contributed
d. Ratio of plan assets to actuarial accrued liability

8. A city is notified by its actuary that its actuarially determined required contribution to its post-employment health care plan is $800,000. Of this amount, the city contributes only $600,000. The compensation cost of all covered employees is accounted for in the general fund. The city should report an expenditure in its general fund and an expense in its government-wide statements of
General Fund . Government-Wide
a. $800,000 . $800,000
b. $800,000 . $600,000
c. $600,000 . $800,000
d. $600,000 . $600,000

9. A city maintains a defined contribution plan to which it agrees to contribute 6 percent of employee wages and salaries. During the year, employees earned $10 million in wages and salaries, but the government appropriated and contributed only $500,000 to the plan. The city accounts for the compensation of all employees in the general fund. The amount that the city should report as an expenditure in its general fund and as an expense in its government-wide statements is
General Fund . Government-Wide
a. $500,000 . $500,000
b. $500,000 . $600,000
c. $600,000 . $500,000
d. $600,000 . $600,000

10. A defined benefit plan is one in which
a. The employer promises specified payments to employees upon their retirement
b. The specific provisions are defined by the Internal Revenue Code
c. The specific provisions are defined by the Uniform Code of Retirement Plans
d. The employee can specify the mix of benefits (e.g., health, pension, insurance) that will be received upon retirement

11. Elton City contributes to a pension plan for its fire-fighters. The city makes contributions to the pension trust fund from its general fund. As of year-end, the pension plan owed $2 million to retired employees.
The city would report this amount as a liability on
a. Its general fund statements and government-wide statements
b. Its permanent fund statements and government wide statements
c. Its government-wide statements only
d. Neither its governmental fund statements nor its government-wide statements

12. The ''funded'' ratio of a pension plan compares
a. The actuarial value of plan assets to the actuarial accrued liability
b. Employer contributions to the actuarial value of plan liabilities
c. Employer contributions to the unfunded actuarial liability
d. Employer contributions to the annual required contribution