Which of the Following Is/are True

question 173

Multiple Choice

Which of the following is/are true?

• A)An employer must recognize changes in the funded status of a defined benefit retirement plan on its balance sheet each period.
• B)U.S.GAAP and IFRS do not require the employer to recognize changes in the funded status of a defined benefit retirement plan immediately in net income.
• C)Changes in the net funded status of a defined benefit retirement plan because investment performance differs from expectations, or because of changes in actuarial assumptions, or in the retirement benefit formula, initially affect other comprehensive income.
• D)Firms amortize the amounts in Other Comprehensive Income over the expected period of benefit as an adjustment to retirement plan cost.
• E)all of the above

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Definitions:

Salaries Accrued

This denotes the salaries that employees have accrued but the company has not yet disbursed.

Salaries Payable

An account representing the amounts owed to employees for work performed but not yet paid.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, typically reported on the income statement.

Accrued Expense

Expenses that have been incurred but not yet paid, representing a company's obligation to make future payments.