1) if the projected benefit obligation for a pension plan exceeds the fair value of plan assets at time of adoption of SFAS No 87, which one of following created?
a. Cumulative asset gain or loss b. cumulative obligation gain or loss c. transition asset d. transition liability
Question 2 - 5 are based on Info for current fiscal year
Beginning balance of plan assets at market value - $1,560,000
actual return on plan assets - 210,000
employers contribution - 150,000
distribution to beneficiaries - 75,000
Service cost - 125,000
Interest cost - 156,000
Changes in benefits and assumptions - 35,000
beginning balance of the PBO - 1,580,000
2) What is the ending balance of plan assets? a. $1,770,000 b. $1,845,000
c. $1,920,000 d. $1,955,000
3) What is the ending balance of the projected benefit obligation (PBO?) a. $1,730,000
b. $1,821,000 c. $1,896,000 d. $1,971,000
4) At the beginning of the year, the pension plan is: a. overfunded by $20,000
b. overfunded by $35,000 c. underfunded by $20,000 d. underfunded by $35,000
5) The underfunding or overfunding of the plan at year end will be disclosed in the:
a. balance sheet of the plan sponsor b. balance sheet of the plan trustee at cost c. income statement of the plan sponsor d. notes to the financial statements of the plan sponsor
6) A major difference between accounting for postretirement benefit plans and pension plans is that:
a. postretirement benefit plans are not required to be funded
b. postretirment benefit plans do not need to show a liability for accumulated postretirment benefit obligation on the plan sponsors balance sheet
c. postretirment benefit plans do not deduct the return of plan assets when funded
d. there is no accumulated postretirement benefit obligation