The Journal Entry a Company Uses to Record Partially Funded

question 54

Multiple Choice

The journal entry a company uses to record partially funded pension rights for its salaried employees, at the end of the year is

• A) debit Salary Expense; credit Cash
• B) debit Pension Expense; credit Unfunded Pension Liability
• C) debit Pension Expense; credit Unfunded Pension Liability and Cash
• D) debit Pension Expense; credit Cash

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Definitions:

Construction

The process of building or assembling infrastructure, buildings, or other substantial physical structures.

Overhaul

A comprehensive process of inspection and repair to ensure an equipment or system operates efficiently.

Double-declining-balance Method

A method of depreciation that accelerates the depreciation of an asset by applying a fixed rate to its declining book value.

Straight-line Method

A depreciation method that allocates the cost of an asset evenly over its useful life, resulting in a constant annual depreciation expense.