The Total Gain or Loss Due to a Curtailment Should

question 89

Multiple Choice

The total gain or loss due to a curtailment should be recognized:

• A) when it is probable that a curtailment will occur and the effects are reasonably estimable, for either a gain or a loss.
• B) immediately.
• C) if a loss, when the employees terminate or the curtailment occurs.
• D) if a gain, when it is probable that a curtailment will and the effects are reasonably estimable.

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Definitions:

Employee Stock Ownership Plan

A plan that helps employees purchase stock in their employing companies.

Gain-Sharing

A compensation strategy where employees receive additional financial benefits from the company's performance improvements.

Two-Tier Wage System

A compensation system where new employees are paid less and receive fewer benefits than existing employees for doing the same job.

Profit Sharing

A company policy of distributing a portion of its profits to its employees, often seen as a motivator and reward for performance.