Question : 1.APB Opinion No. 8 set minimum and maximum limits the : 1242709

Accounting

1.APB Opinion No. 8 set minimum and maximum limits on the annual provision for pension cost. An amount that was always included in the calculation of both the minimum and the maximum limit is

a.Normal cost

b.Amortization of past service cost

c.Interest on unfunded past and prior service costs

d.Retirement benefits paid

2.In accounting for a pension plan, any difference between the pension cost charged to expense and the payments into the fund should be reported as

a.An offset to the liability for prior service cost

b.Accrued or prepaid pension cost

c.An operating expense in this period

d.An accrued actuarial liability

3.Benefits under a pension plan that are not contingent upon an employee’s continuing service are

a.Granted under a plan of defined contribution

b.Based upon terminal funding

c.Actuarially unsound

d.Vested

4.According to SFAS No. 87, “Employer’s Accounting for Pensions,” gains and losses should be

a.Fully allocated to current and future periods

b.Offset against pension expense in the year of occurrence

c.Allocated if any unrecognized gain or loss at the beginning of the year is in excess of 10 percent of the greater of the projected benefit obligation or the market value of the plan assets

d.Disclosed in a note to the financial statements only

5.According to SFAS No. 87, prior service costs should be

a.Charged to retained earnings as a cost relating to the past

b.Amortized over the service period of each employee expected to receive benefits

c.Taken into consideration only by expensing interest on the unfunded amount

d.Recorded in full as a liability at their discounted present value

6.According to SFAS No. 87, which of the following is never recorded as a component of annual pension cost?

a.Amortization of the intangible asset recorded as the offset to the minimum pension liability

b.Amortization of prior service cost

c.Amortization of gains and losses

d.Amortization of the transition amount

7.In determining whether to accrue employee’s compensation for future absences, among the conditions that must be met are that the obligation relates to rights that

AccumulateVest

a.NoNo

b.No Yes

c.Yes No

d.YesYes

8.The funded status of a defined benefit pension plan is equal to the

a.Vested benefit obligation minus the fair value of the pension plan assets.

b.Accumulated benefit obligation minus the fair value of the pension plan assets.

c.Projected benefit obligation minus the fair value of the pension plan assets.

d.Projected benefits plus the fair value of the pension plan assets minus employer contributions to the pension plan.

9.If the projected benefit obligation of a defined benefit pension plan exceeds the fair value of the pension plan assets, the employer must report

a.The difference as a liability in the balance sheet and a corresponding adjustment to the amount of pension expense reported in earnings.

b.The difference as a liability in the balance sheet and a corresponding adjustment to other comprehensive income, net of deferred income taxes .

c.The difference as an asset in the balance sheet and a corresponding adjustment to the amount of pension expense reported in earnings.

d.The difference as an asset in the balance sheet and a corresponding adjustment to other comprehensive income, net of deferred income taxes.

10.The funded status of a defined benefit pension plan is reported in the balance sheet.

a.As an asset, if the pension plan is underfunded.

b.As a liability, if the pension plan is underfunded.

c.Because it measures the minimum pension plan liability.

d.When it exceeds the projected benefit obligation.

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.