Presented below is pension information related to waters company as

1. Presented below is pension information related to Waters Company as

of December 31, 2015:
Accumulated benefit obligation $3,000,000
Projected benefit obligation 3,500,000
Plan assets (at fair value) 3,700,000
Accumulated OCI (G / L) 100,000

The amount to be reported as Pension Asset / Liability as of December

31, 2015 is 
Pension Liability of $500,000.
Pension Asset of $700,000.
Pension Liability of $200,000.
Pension Asset of $200,000.

Question 2.2. Which of the following disclosures of pension plan information

would not normally be required? 
The amount of prior service cost changed or credited in previous years.
The major components of pension expense.
A reconciliation showing how the projected benefit obligation and the fair

value of the plan assets changed from the beginning to the end of the period.
The rates used in measuring the benefit amounts.

Question 3.3. A corporation has a defined-benefit plan. A pension liability

will result at the end of the year if the 
projected benefit obligation exceeds the fair value of the plan assets.
fair value of the plan assets exceeds the projected benefit obligation.
amount of employer contributions exceeds the pension expense.
amount of pension expense exceeds the amount of employer contributions.

Question 4.4. The following information relates to the pension plan for

the employees of Turner Co.:
1/1/14 12/31/14 12/31/15 
Accum. benefit obligation $6,160,000 $6,440,000 $8,400,000
Projected benefit obligation 6,510,000 6,972,000 9,338,000
Fair value of plan assets 5,950,000 7,280,000 8,036,000
AOCI – net (gain) or loss -0- (1,008,000) (1,120,000)
Settlement rate (for year) 11% 11%
Expected rate of return (for year) 8% 7% 

Turner estimates that the average remaining service life is 16 years. Turner’s

contribution was $882,000 in 2015 and benefits paid were $658,000.

For purposes of determining the amount of AOCI (net gain) amortized in 2015,

the corridor for 2015 is 
$722,400
$728,000
$791,000
$933,800
Question 5.5. Presented below is information related to Decker Manufacturing

Company as of December 31, 2015:

Projected benefit obligation $800,000
Accumulated OCI -net gain 300,000
Accumulated OCI (PSC) 405,000

The amount for the prior service cost is related to an increase in benefits.

The fair value of the pension plan assets is $600,000.

The pension liability reported on the balance sheet at December 31, 2015 is 
$200,000
$600,000
$800,000
1,$205,000
Question 6.6. An example of a correction of an error in previously issued

financial statements is a change 
from the FIFO method of inventory valuation to the LIFO method.
in the service life of plant assets, based on changes in the economic

environment.
from the cash basis of accounting to the accrual basis of accounting.
from the double-declining balance method of depreciation to the straight-line

method.
Question 7.7. Robinson Company changed its method of pricing inventories

from FIFO to LIFO. What type of accounting change does this represent? 
A change in accounting estimate.
A change in reporting entity.
A change due to error.
A change in accounting principle.
Question 8.8. When a company decides to switch from the double-declining

balance method to the straight-line method, this change should be handled

as a 
change in accounting principle.
change in accounting estimate.
prior period adjustment.
correction of an error.

9. The following facts relate to the Patton Co. postretirement benefits plan

for 2015:

Service cost $180,000
Interest Expense 135,000
APBO, January 1, 2015 $1,500,000
Benefit payments to employees $115,000

The amount of postretirement expense for 2015 is

$180,000.
$315,000.
$360,000.
$430,000.

Question 10.10. Counterbalancing errors 
correct themselves over a two year period.
never correct themselves.
always require correcting entries.
none of the above are correct.

Question 11.11. On January 1, 2012, Lake Co. purchased a machine for

$1,056,000 and depreciated it by the straight-line method using an estimated

useful life of eight years with no salvage value. On January 1, 2015, Lake

determined that the machine had a useful life of six years from the date of

acquisition and will have a salvage value of $96,000. An accounting change

was made in 2015 to reflect these additional data. The accumulated

depreciation for this machine should have a balance at December 31, 2015 of 
$584,000. 
$616,000. 
$640,000. 
$704,000.

 

Question 12.12. On January 1, 2012, Penn Corporation acquired machinery

at a cost of $750,000. Penn adopted the double-declining balance method of

depreciation for this machinery and had been recording depreciation over an

estimated useful life of ten years, with no residual value. At the beginning of

2015, a decision was made to change to the straight-line method of

depreciation for the machinery. The depreciation expense for 2015 would be 
$38,400.
$54,857.
$75,000.
$107,142.

Question 13.13. A pension asset is reported when 
the accumulated benefit obligation exceeds the fair value of pension plan

assets.
the accumulated benefit obligation exceeds the fair value of pension plan

assets, but a prior service cost exists.
pension plan assets at fair value exceed the accumulated benefit obligation.
pension plan assets at fair value exceed the projected benefit obligation.

Question 14.14. On July 1, 2015 Taylor Corporation hired you as their new

bookkeeper. In your first few days on the job, you noticed a few irregularities.

One of these was the failure of the previous bookkeeper to record year-end

wages payable of $15,000 on December 31, 2014. The wages were paid in

January, 2015. The 2014 financial statements were issued in February, 2015.

You determine the necessary correcting entry is 
Salaries and Wages Expense 15,000
Salaries and Wages Payable 15,000
Salaries and Wages Expense 15,000
Cash 15,000
Salaries and Wages Payable 15,000
Cash 15,000
Retained Earnings 15,000
Salaries and Wages Expense 15,000

Question 15.15. The relationship between the amount funded and the amount

reported for pension expense is as follows: 
pension expense must equal the amount funded.
pension expense will be less than the amount funded.
pension expense will be more than the amount funded.
pension expense may be greater than, equal to, or less than the amount

funded.

Question 16.16. Postretirement benefits may include all of the following,

except 
severance pay to laid-off employees.
dental care.
legal and tax services.
tuition assistance.

Question 17.17. Alternative methods exist for the measurement of the

pension obligation (liability). Which measure requires the use of future

salaries in its computation? 
Restructured benefit obligation
Vested benefit obligation
Accumulated benefit obligation
Projected benefit obligation

Question 18.18. Accounting changes are often made and the monetary

impact is reflected in the financial statements of a company even though,

in theory, this may be a violation of the accounting concept of 
materiality.
consistency.
conservatism.
objectivity.

Question 19.19. In a defined-benefit pension plan 
the benefit of gain or the risk of loss from the assets contributed to the

pension plan is borne by the employee.
a formula is used that defines the benefits that the employee will receive

at the time of retirement.
pension expense and the cash funding amount are the same.
the employer’s responsibility ends with the annual contribution; no promise

is made concerning the ultimate benefits to be paid out to the employees.

Question 20.20. Which of the following is (are) the proper time period(s) to

record the effects of a change in accounting estimate? 
Current period and prospectively
Current period and retrospectively
Retrospectively only
Current period only

Question 21.21. Barton, Inc. received the following information from its

pension plan trustee concerning the operation of the company’s defined-benefit

pension plan for the year ended December 31, 2015.

January 1, 2015 December 31, 2015
Fair value of pension plan assets $4,200,000 $4,500,000
Projected benefit obligation 4,800,000 5,160,000
Accumulated benefit obligation 840,000 1,020,000
Accumulated OCI – (Gains / Losses) -0- (90,000)

The service cost component of pension expense for 2015 is $450,000 and

the amortization of prior service cost due to an increase in benefits is $60,000.

The settlement rate is 10% and the expected rate of return is 9%. What is the

amount of pension expense for 2015? 
$450,000
$612,000
$621,000
$522,000

Question 22.22. A company changes from percentage-of-completion to

completed-contract method, which is used for tax purposes. The entry to

record this change should include a 
debit to Construction in Process.

debit to Loss on Long-term Contracts in the amount of the difference on prior

years, net of tax.
debit to Retained Earnings in the amount of the difference on prior years, net

of tax.
credit to Deferred Tax Liability.

Question 23.23. On December 31, 2015 Dean Company changed its method

of accounting for inventory from the weighted average cost method to the

FIFO method. This change caused the 2015 beginning inventory to increase

by $840,000. The entry to record the cumulative effect of this accounting

change, ignoring all tax effects, will also include an 
$840,000 debit to COGS.
$840,000 credit to COGS.
$840,000 debit to Retained Earnings.
$840,000 credit to Retained Earnings.

Question 24.24. Which of the following is not a characteristic of a

defined-contribution pension plan? 
The employer’s contribution each period is based on a formula.
The benefits to be received by employees are determined by an employee’s

highest compensation level defined by the terms of the plan.
The accounting for a defined-contribution plan is straightforward and

uncomplicated.
The benefit of gain or the risk of loss from the assets contributed to the

pension fund is borne by the employee.

Question 25.25. Presented below is pension information related to Woods,

Inc. for the year 2015:
Service cost $82,000
Interest on projected benefit obligation 54,000
Interest on vested benefits 24,000
Amortization of prior service cost due to increase in benefits 12,000
Expected return on plan assets 18,000

The amount of pension expense to be reported for 2015 is 
$118,000.
$154,000.
$172,000.
$130,000.

University Writings
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.