Which of the Following Is/are Not True

question 63

Multiple Choice

Which of the following is/are not 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 firm's long term investment assets established to fund the retirement obligations.
• E)all of the above

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Definitions:

Absolute Advantage

A situation in which a nation, as the result of its previous experience and/or natural endowments, can produce more of a good (with the same amount of resources) than another nation can.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its trading partners, leading to specialized production and trade benefits.

Bagels

A dense, chewy, doughnut-shaped bread product, often enjoyed as a breakfast item and can be topped with various ingredients.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors.