__1. If a company has an underfunded defined-benefit pension plan:

A. no payment may be made to retirees until the company deposits all of the necessary assets into the pension fund.

B. the difference between fund assets and amounts owed to retirees will still be paid by the federal Pension Benefit Guaranty Corporation.

C. the value of the ABO (but not of the PBO) must be precisely the same as the amount of assets set aside to pay pension benefits.

D. All of the above are true.

E. None of the above is true.

___2. Which of the following is a TRUE sentence with regard to a defined-contribution pension plan?

A. Both the employer and employee must make annual payments to the plan.

B. It does not matter to the employee whether the company has a defined benefit plan or a defined-contribution plan, because he or she still has retirement benefits.

C. A 401(k) plan is an example of a defined-contribution plan.

D. All of the above are true.

E. None of the above is true.

___3. The Public Company Accounting Oversight Board:

A. establishes accounting principles only for issuers.

B. interacts with the IASB in an effort to bring about convergence.

C. must report to the Securities and Exchange Commission as a matter of federal law.

D. All of the above are true.

E. None of the above is true.

___4. Unlike defined-benefit pension plan assets, defined-contribution pension plan assets:

A. are held by the individual participants in income-producing investment accounts.

B. are reported in the sponsoring company's financial statements.

C. must be invested entirely in the sponsoring company's securities.

D. All of the above are true.

E. None of the above is true.

___5. The International Accounting Standards Board:

A. produces accounting rules for many developing and developed countries around the world, except for the United States.

B. is expected by some financial experts ultimately to be the single accounting standard-setter for developing and developed countries around the world.

C. produces its own authoritative pronouncements, called "IFRS".

D. All of the above are true.

E. None of the above is true.

___6. The Financial Accounting Standards Board:

A. is a U.S. governmental agency that produces accounting principles in the United States.

B. is a private-sector entity responsible for the preparation and continued revision of the Accounting Standards Codification.

C. does not provide accounting principles for privately held U.S. companies.

D. All of the above are true.

E. None of the above is true.

___7. Corporate pension plans in the United States:

A. have reversed a trend and are now increasingly more likely to be defined benefit plans rather than defined-contribution plans.

B. will get complete protection for beneficiaries from the U.S. Pension Benefit Guaranty Corporation, if an employer company goes out of business and still owes retirement benefits to its employees.

C. are governed in part by the requirements of the Employee Retirement Income Security Act of 1974.

D. All of the above are true.

E. None of the above is true.

___8. A Form 10-K:

A. must usually be submitted to the SEC within 60 days after a reporting company's year-end.

B. includes audited financial statements and other significant financial data.

C. is a comprehensive annual report of an issuer's operations and financial condition.

D. All of the above are true.

E. None of the above is true.

___9. A company's annual pension expense calculation for its defined-benefit plan includes:

A) the cost of employees' service for years prior to their being employed by the company.

B) the cost of employees' service performed during the year.

C) a deduction for the cash that the company actually sets aside to fund the plan.

D) All of the above are true.

E) None of the above is true.

___10. The American Institute of CPAs:

A) had committees that produced generally accepted accounting principles before the FASB was formed.

B) is a professional organization for accountants in the United States.

C) produces auditing standards for non-issuers, through its committee, the Auditing Standards Board.

D) None of the above is true.

E) All of the above are true.