Cost-based Inventories And Cost Of Sales

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The Framework for Financial Reporting
Accounting Judgements
Statements of Income and Comprehensive Income
Statements of Financial Position and Changes in Equity; Disclosure Notes
The Statement of Cash Flows
Revenue Recognition
Financial Assets: Cash and Receivables
Cost-Based Inventories and Cost of Sales
Long-Lived Assets
Depreciation, Amortization, and Impairment
Financial Instruments: Investments in Bonds and Equity Securities

All Questions

Question 1

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In a defined contribution pension plan the retirement benefits to the employee are not defined.

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Question 2

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True/False

In a defined contribution plan,employers run the risk of high pension contributions.

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Question 3

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True/False

Employees are not allowed to make contributions to a defined contribution pension plan.

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Question 4

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True/False

The formula used to calculate pension expense must necessarily be the same as the formula used to calculate funding to the plan.

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Question 5

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True/False

The accumulated benefit and projected unit credit methods both result in increasing employer contributions to the pension plan over time.

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Question 6

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The accumulated benefit and projected unit credit methods both take into account employee salary changes over time.

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Question 7

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A non-funded pension plan is one where the employee must bear a part of the cost of the plan.

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Question 8

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All three funding approaches result in full funding of a pension plan over time.

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Question 9

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Current service cost is usually the largest single component of pension expense under a defined benefit pension plan.

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Question 10

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Post-retirement benefits other than pensions must now be accounted for in a manner similar the way pensions are accounted for.

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Question 11

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In order to be registered,a pension plan must be trusteed.

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Question 12

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An employee of XYZ will receive retirement benefits of $1,000 per month if the employment period is 15 years.However,if the employment period is 20 years,the retirement benefits will be $1,300 per month.This is an example of a defined contribution pension plan.

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Question 13

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Contributions made by an employer to a qualified pension plan usually are taxable to the employee at that time.

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Question 14

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A pension plan that gives an employee the right to retirement benefits which are not contingent upon the employee remaining with the company provides vesting benefits to the employee.

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Question 15

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Pension plans that are registered meet Revenue Canada requirements and hence qualify for tax advantages.

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Question 16

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Usually,the amount of funding by an employer will exceed the benefits to be paid out to employees.

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Question 17

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A pension plan is fully funded when the assets in the pension fund are adequate to pay the current retirees.

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Question 18

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Defined benefit pension plans do not specify benefits per period after retirement,but base the pension benefits directly on the specified contributions.

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Question 19

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Past service costs that have vested must be deferred and amortized through pension expense over time,while gains or losses on plan curtailments must be immediately recognized.

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Question 20

Short Answer

Under the simplified approach to accounting for defined benefit pension plans under ASPE,the actuarial cost method used for pension accounting will be different than that used for funding.

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