Which of the Following Is/are True

question 236

Multiple Choice

Which of the following is/are true?

• A)U.S.GAAP and IFRS require firms to recognize the cost of retirement benefits (pensions, health care, life insurance) as an expense while employees work, not when they receive payments or other benefits during retirement.
• B)Employers often contribute cash to a trust, an entity legally separate from the employer, to fund their retirement obligations.
• C)The accounting records of the trust established to fund the retirement obligations are separate from the accounting records of the employer, and the amounts on the two sets of books usually differ.
• D)Payments to employees come from both the employer's contributions and investment returns of the trust established to fund the retirement obligations.
• E)all of the above

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Definitions:

Revenue Enhancements

Euphemistic term for measures aimed at increasing governmental income, typically through raising taxes or fees.

Federal Government

The national government of a federation, which holds authority over the entire territory, distinguishing it from state or local governments.

Ronald Reagan

The 40th President of the United States (1981–1989), known for his conservative policies, economic reforms, and role in ending the Cold War.

Market Forces

The economic factors affecting the supply and demand for goods and services in the market, including competition, consumer preferences, and regulatory policies.