Assertions About Existence Address Whether Assets and Liabilities Exist,and Assertions

question 19

True/False

Assertions about existence address whether assets and liabilities exist,and assertions about occurrence address whether recorded transactions,such as sales transactions,have occurred.

Understand the components of pension expense and how they are calculated.

Recognize differences in pension accounting under IFRS and U.S. GAAP.

Understand the concept of prior service cost and how pension amendments affect pension plans.

Calculate pension expense using given data on service cost, interest cost, and returns on plan assets.

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Definitions:

Indirect Method

In finance, it refers to a cash flow statement approach that adjusts net income for the effects of transactions that do not involve cash, to calculate net cash flow from operating activities.

Income Statement

A financial document that provides a summary of a company's revenues, expenses, and profits/losses over a specified period of time.

Net Cash

An accounting term that represents the amount of cash remaining after all operating, investing, and financing activities are accounted for in a given period.

Operating Activity

Transactions and events related to the principal revenue-generating activities of an entity.