Which of the Following Is/are True

question 214

Multiple Choice

Which of the following is/are true?

• A)U.S.GAAP and IFRS do not permit the employer to prepare consolidated financial statements with the retirement trust.
• B)The employer must report the net funded status of each defined benefit retirement plan (that is, the fair value of retirement trust assets minus the retirement trust obligation) as either an asset or a liability on its balance sheet.
• C)The employer must report the net funded status of each defined benefit retirement plan and credit (for an overfunded plan) or debit (for an underfunded plan) is to Other Comprehensive Income.
• D)Notes to the financial statements provide information about investments made by the retirement trust and how trust assets and liabilities changed during a period.
• E)all of the above

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Definitions:

Equivalent Units

A term used in cost accounting to denote a conversion measure that expresses the amount of work done on partially completed units in terms of fully completed units.

Conversion Cost

The cost associated with converting raw materials into finished products, typically including labor and overhead expenses.

Equivalent Unit

A metric used in cost accounting to express the amount of work done on incomplete units as a proportion of work done on complete units.

Factory Overhead

Refers to the indirect costs associated with manufacturing, excluding direct materials and direct labor costs.