Which of the Following Is/are Not True

question 130

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 when the employees receive payments or other benefits during retirement, not while employees work.
• 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:

Bankrupt

A legal status of a person or entity that cannot repay the debts it owes to creditors.

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of accounts receivable that is expected to be uncollectible.

Debit Balance

An excess of debits over credits in a ledger account, typically indicating an increase in assets or expenses.

Posting Error

A mistake made during the process of entering or recording financial transactions in the accounting records.