Question: 5.In a defined benefit plan, a formula is used that defines the benefits that the employee will receive at the time of retirement. True or
5.In a defined benefit plan, a formula is used that defines the benefits that the employee will receive at the time of retirement. True or false?
6.
Securities that could be classified as Trading include
| | | a) | redeemable preferred stock. | |
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7 Which of the following are requirements for a security to be classified as held-to maturity?
| | | a) | The security must be a debt security. | |
| | | b) | The ability to hold the security to maturity. | |
| | | c) | The company must plan or intend to hold the security to maturity. | |
| | | d) | Only A and B are required | |
| | | e) | A, B and C are all required. | |
8.Palmer Corporation's taxable income differed from its accounting income computed for this past year.
An item that would not create a permanent difference in accounting and taxable incomes for Palmer
would be
| | | a) | using accelerated depreciation for tax purposes and straight-line depreciation for book purposes. | |
| | | b) | expenses incurred in obtaining tax-exempt income. | |
| | | c) | fines incurred and paid. | |
| | | d) | expenses for life insurance premiums on employees, the company is the beneficiary. | |
9.In reporting a pension plans funded status on the balance sheet, a company should report as the pension liability/asset the net of the following
| | | a) | smoothed PBO less the fair value of the plan assets. | |
| | | b) | actuarial PBO less the fair value of the plan assets. | |
| | | c) | contributions to the plan less actuarial PBO. | |
| | | d) | contributions to the plan less pension expense. | |
10.ABC Company purchased 1,500 shares of XYZ, Inc which brings the total outstanding to 10,000. The company cannot exert significant influence. The investment should be classified as
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| | | c) | Fair value to Net income (FVNI) | |
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