ACCOUNTING
MULTIPLE CHOICE
1. Which of the following would never require reporting deferred tax assets or deferred tax liabilities? (Points : 1)
2. Which of the following statements typifies defined contribution plans? (Points : 1)
3. Which of the following causes a temporary difference between taxable and pretax accounting income? (Points : 1)
4. Consider the following:
A. I present value of vested benefits at present pay levels
B. II present value of nonvested benefits at present pay levels
C. III present value of additional benefits related to projected pay increases
Which of the above constitutes the accumulated benefit obligation? (Points : 1)
5. Of the following temporary differences, which one ordinarily creates a deferred tax asset? (Points : 1)
6. The annual pension expense for what type of pension plan(s) is recorded by a journal entry that includes a debit to pension expense and a credit to the pension asset or pension liability? (Points : 1)
7. The postretirement benefit obligation is the: (Points : 1)
8. When the service method is used for amortizing prior service costs, the amount recognized each year is (Points : 1)
9. The result of interperiod tax allocation is that: (Points : 1)
10. Which of the following statements is true regarding SFAS 109 and its use of the asset and liability approach? (Points : 1)
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