In terms of classification of short-term compensated absences; which of the following is incorrect?Under vesting short-term compensated absences, employees are entitled to a cash payment for unusedentitlement on leaving the entityUnder non-vesting short-term compensated absences, employees are not entitled to a cash payment for unusedentitlement on leaving the entityAccumulating short-term compensated absences are those that are carried forward and can be used in futureperiods if the current period's entitlement is not used in fullNon-accumulating short-tam compensated absences are those that are carried forward and can be used in futureperiods if the current period's entitlement is not used in full

Vesting short term absences entitled to cash payments for unused entitlement and non vesting short…

In terms of classification of short-term compensated absences; which of the following is incorrect? Under vesting short-term compensated absences, employees are entitled to a cash payment for unused entitlement on leaving the entity O Under non-vesting short-term compensated absences, employees are not entitled to a cash payment for unused entitlement on leaving the entity O Accumulating short-term compensated absences are those that are carried forward and can be used in future periods if the current period's entitlement is not used in full Non-accumulating short-tam compensated absences are those that are carried forward and can be used in future periods if the current period's entitlement is not used in full

In terms of classification of short-term compensated absences; which of the following is incorrect? Under vesting short-term compensated absences, employees are entitled to a cash payment for unused entitlement on leaving the entity O Under non-vesting short-term compensated absences, employees are not entitled to a cash payment for unused entitlement on leaving the entity O Accumulating short-term compensated absences are those that are carried forward and can be used in future periods if the current period's entitlement is not used in full Non-accumulating short-tam compensated absences are those that are carried forward and can be used in future periods if the current period's entitlement is not used in full

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 10MC

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Statement1:An entity recognizes no liability or expense for non-accumulating compensated absences until the time of the absence, because employee service does not increase the amount of the benefit.Statement 2: An entity shall measure the expected cost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of the used entitlement that has accumulated at the end of the reporting period.Statement 3: An obligation arises as the employees render service that increases their entitlement to future compensated absences. The obligation exists, and is recognized, even if the accumulating compensated absences are vesting. Only two of the statements are correct All statements are incorrect All statements are correct Only one of the statements is correct
Which of the following criteria is not required for the recognition of a liability for compensated absences? The amount of the obligation must be estimable. Payment of the obligation will require the use of current assets. Payment of the obligation must be probable. The compensation either evsts with the employee ir can be carried forward to subsequent years.
These are compensated or paid absences that are carried forward and can be used in future periods and the employees are entitled to a cash payment for unused entitlement on leaving the entity. Nonaccumulating and nonvesting Nonaccumulating and vesting Accumulating and vesting Accumulating and nonvesting
Which of the following is/are true with regard to accounting for short-term employee benefits? Unpaid short-term benefits are reported as accrued under current liabilities at an undiscounted value. If the payment exceeds the undiscounted amount of the benefits, the excess is reported as prepayment under current assets. The benefits are reported as an expense under profit or loss, unless another standard requires or permits the cost of the benefits to be capitalized. Group of answer choices Only statement 1. All statements are true. Only statement 3. Only statement 2.
Which is a valid statement regarding recognition of liabilities? a. A non-interest bearing note is initially recognized at face value. b. A provision should not be recognized for future operating losses. c. For accumulating compensated absences, an entity should recognize the expense and related liability during the period the absences are incurred by the employees. d. The estimated future costs of supplying awards for customer loyalty program shall be recognized as an expense in the period the award credits are availed of by customers.
Nonqualified deferred compensation plan benefits constitute income when: Select one: a. The company acquires a life insurance policy on the employee. b. The company funds the benefits through allocation of its assets. c. The allocated assets are available to the employee with substantial limitations, conditions and risk of forfeiture. d. The allocated assets are available to the employee without substantial limitations, conditions and risk of forfeiture.
Which of the following is true about plan assets? Any excess return on plan assets are earned to the benefit of the company Includes qualifying insurance policies None of the statements are correct These are assets held for short-term purpose in the event of employee retirement during the year
Which of the following amounts paid by an employer to an employee is not subject to withholding? Oa. Salary Ob. Travel expense reimbursements from an accountable plan Oc. Commissions UE Od. Bonus Oe. All of these choices are subject to withholding.
For termination benefits payable as a result of an entity’s decision to terminate an employee’s employment, the entity can no longer withdraw the offer when the entity has communicated to the affected employees a plan of termination, provided which of the following criteria All of the other three choices. Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made. Either one of the three choices. The plan identifies the number of employees whose employment is to be terminated, their job classifications or functions and their locations (but the plan need not identify each individual employee) and the expected completion date. The plan establishes the termination benefits that employees will receive in sufficient detail that employees can determine the type and amount of benefits they will receive when their employment is terminated.
Employee benefits are all forms of monetary consideration given by an entity in exchange for services rendered by employees or for the termination of employment. a. TRUE b. FALSE
Which of the following statements are true? When an employee has rendered service to an entity during a period, the entity shall recognize the contribution payable to a defined contribution plan in exchange for that service: As a liability, after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, an entity shall recognize that excess as an asset, regardless if the prepayment will lead to a reduction in future payments or a cash refund, or not. Group of answer choices Only statement 2. None of the statements are true. Only statement 1. Both statements 1 and 2.
The statement of affairs prepared by the trustee at this time should include an estimated deficiency to unsecured creditors of: