1. Explain the difference between pretax financial income and taxable income.

2. What is the difference between a future taxable amount and a future deductible amount? when is it appropriate to record a valuation account for a deferred tax asset?

3. Name three approaches to measuring benefit obligations from a pension plan and explain how they differ.

4. Determine the meaning of the following terms:

a) contributory plan

b) vested benefits

c) retroactive benefits

d) years-of-service method