If a pension plan amendment is adopted and retroactive benefits are granted to employees, the amount of the prior service cost at the date of grant is accounted for
A) as an intangible asset and liability that are recognized on the plan amendment date.
B) as a prior period adjustment for the total amount of the prior service cost that is reported on the statement of retained earnings.
C) as the total amount of the prior service cost that is recognized as an expense on the current period's income statement.
D) initially as an unamortized amount to be included in the computation of pension expense over future periods.
D
You might also like to view...
A company purchases an oil well for $200,000 . It estimates that the well contains 250,000 barrels, has a ten-year life, and has no salvage value. If the company extracts and sells 20,000 barrels during the first year, how much depletion expense should be recorded?
a. $40,000 b. $16,000 c. $20,000 d. $100,000
In view of the fact that is considered a flabby expression
Indicate whether the statement is true or false
Adam is writing a proposal to the board of directors about an idea he has for a new product line. What should he do to best persuade the members to adopt his idea?
A) Avoid using facts and figures as it may bore or confuse his readers. B) Show how his proposal will increase company revenues. C) Avoid mentioning any risks involved because doing so might scare the audience. D) Adam should do all of these.
Bridget has a company that is externally focused and highly controlled. She feels that she needs to pressure her employees to perform in a demanding work environment in order to get the results she needs to beat the competition. Bridget’s company would fit into which type of culture of the competing values framework?
a. Hierarchy b. Adhocracy c. Market d. Clan