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- Question 13 Pension expense is decreased by: A- Amortization of prior service cost. B- Amortization of net gain. C- Benefits paid to retired employees. D- Prior service cost. O A O B O DQuestion 17 S1: Employee-sponsored retirement plans can be categorized into two: current service cost and projected benefit obligation. S2: Liabilities pertains to the settlements which resulted in an outflow of resources embodying economic benefits. S3: PAS 19, provides that only the unvested past service costs shall be recognized as expense immediately. one statement is true two of the statements are true all statements are false all statements are true1. Supplemental wage payments include all of the following except: () Commissions. Bonuses. Expenses paid under an accountable plan. Taxable fringe benefits.
- Question 14 what give rises to the changes in PBO balance? A- service cost and interest cost B- prior service cost that is caused by a change in pension formula C- changes in life expectancy estimates D- all of the above O A O C ODPayment of retirement benefits: A. Increases the PBO. B. Increases the ABO. C. Reduces the GBO. D. Reduces the PBOWhich compensation is generally paid currently? Multiple Choice Salary and bonus. Salary and benefits. Benefits and bonus. Bonus and stock options. Stock options and salary.
- Question 19 Which of the following correctly describes defined benefit (DB) pension plans? A- A typical example of DB plan is 401(K) savings account B- Retirement benefits depend on how much money has accumulated in an individual's account. C- Employers never need to report a liability related to DB plans D- Retirement benefits are based on the plan benefit formula. O A O BWhich component of Kensington’s periodic pension cost would be shown in OCI ratherthan P&L?A . Service costB . Net interest (income) expenseC . Remeasurements**Pls new ans How is the Accumulated Benefit Obligation (ABO) different from the Projected Benefit Obligation (PBO)? What events may cause the balance of the PBO to change?
- Defined benefit pension plans a stipulate contributions will be made to the employer’s retirement fund b Bestows the risk of low portfolio returns to the employee c Bestows the risk of low portfolio returns to the employer d Will benefit employers if retirees live longerAn increase in OCI related to plan assets occurs when: Select one: a. The accumulated benefit obligation is more than expected. b. The vested benefit obligation is less than expected. c. Retiree benefits paid out are less than expected. d. The return on plan assets is higher than expected. e. The employer contributes an amount greater than it was liable to do.An option that makes your claim to retirement benefits contingent on how long you have worked for the company. a) Vesting b) Maturity c) Qualifying d) Entitlement
