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:

Temporary Working Capital

Working capital that supports seasonal peaks in business.

Seasonal Businesses

Companies that experience significant fluctuations in business activity due to seasonal factors such as holidays, weather, and consumer habits.

Customer Receivables

Money owed to a business by its customers for products or services delivered on credit.

Net Working Capital

The difference between a company's current assets and current liabilities.