The Lucas Company offers employees a defined contribution pension plan. In 2015, Lucas contributed $175,000 to the plan, which paid $195,000 to retired employees. Which of the following statements is true?
A) Lucas will record an accrued liability of $20,000.
B) Lucas will report pension expense of $175,000.
C) Lucas will recognize prior service cost of $20,000.
D) Lucas will recognize actuarial gains and losses on the plan over current and future periods.
B
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An inflation guard endorsement will
A) protect you from a decline in housing prices by ensuring that you can resell your home for at least as much as you paid for it. B) protect you from a rise in housing prices by ensuring that you can resell your home for the initial purchase price plus an adjustment for inflation. C) periodically increase your dwelling protection to reflect increases in replacement cost. D) increase the co-insurance percentage in the replacement cost provision.
The laws governing franchising are primarily designed to protect franchisors from dishonest franchisees
Indicate whether the statement is true or false
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What will be an ideal response?
When assessing the fixed-payment coverage ratio, ________.
A) the lower its value the more risky is the firm B) the lower its value, the higher is the firm's financial leverage C) preferred stock dividend payments can be disregarded D) the higher its value, the more difficult it is for a firm to pay its debts