Questo CPA 073 1. Interest cost included in the net pension cost recognized for a per defined benefit pension plan resents the Shortage between the expected and returns on plan assets. h) increase in the projected benet a tion due to the passage of time c) increase in the fair value of an assets due to the passage of time d) Amortization of the discount on recognised prior service costs. Question CPA 00699 2. Visor Co maintains a defined benet pension plan for its employees. The Visor's net periodic pension cost is mesured using the a) Unfunded accumulated benefit obligation b) Unfunded vested benefit obligation Projected benefit obligation d) Expected return on plan assets Question CPA-00910 3 On July 31, 1991, Tem Co. amended its single employee defined benefit plan by granting increased benefits for services provided prior to 1991. This prior service cost will be reflected in the financial statements) for: al Years before 1991 only. b) Year 1991 only. Year 1991, and years before and following 1991 d) Year 1991, and following years only. Pensions (Chapter 101 Question CPA-00681 Jan Corp. amended its defined benefit pension plan, granting a total credit of $100,000 to four employees for services rendered prior to the plan's adoption. The employees, A, B, C and D, are expected to retire from the company as follows: "A" will retire after three years. "B" and "C" will retire after five years "D" will retire after seven years. What is the amount of prior service cost amortization in the first year? a) So b) $5,000 c) $20,000 d) $25,000 Out OP 2,000 years in the ne w $2.000 dos S000 Question C ORES The 6O 16 werd Carpet Pred bacon Unded a nd pension 12.000.000 2000 7.000.000 2,550,000 Unrecogid prior service cost What is the funded status of Ward's pension plan at May 31, 1990? 55.000.000 underfunded $5.000.000 evrunded $7.500,000 underfunded $7.500.000 everfunded. d Question ORA-00878 7. The following information pertains to Sede Co.'s pension plan Actuarial estimate of projected benefit obligation at 1/1/19 $72.000 Assumed discount rate 10N Service costs for 1989 1000 Pension benefits paid during 1909 15,000 che in actuarial estimates occurred during 10 sede projected benefit obligation December 31, 1969 was $84.200 575.000 $79,200 d) $82.200 Question CPA-0436 The following information pertains to Sparta Co.'s defined be Discount rate Expected rate of return Average service life 10% 12 years At January 1, 1992: Projected benefit obligation Fair value of pension plan assets Unrecognized prior service cost Unamortized pension gain $600.000 720,000 240 COO 96.000 At December 31, 1992: Projected benefit obligation Fair value of pension plan assets 910.000 825,000 Service cost for 1992 was $90,000. There were no contributions made or benefits paid during the year. Sparta uses the straight line method of amortisation over the maximum period permitted. Amount to Be Calculated . Interest cost. a) 1,000 b) 2.000 c) 5.000 d) 48,000 Question CPA04366 The following information pertanto SpaCosted bent sensor Discount rate ected rate of return Average service life 12 years Al January 1, 1992: Projected benefit obligation Fair value of pension plan assets Unrecognized prior service cost Unamortized pension gain 240.000 96,000 At December 31, 1992: Projected benefit obligation Fair value of pension plan assets 910.000 825,000 Service cost for 1992 was $90,000. There were contributions made or benefits paid during the year Sparta uses the straight-line method of amortization over the maximum period permitted Amount to be Calculate: Amortization of prior service costs. a) b) c) d) e) $1.000 $2,000 $5.000 $10,000 $20,000 Question CPA-05402 10. In 20X9, Rhino Robots Inc. has the following information related to its defined benefit pension plan: $2.130.000 Fair value of plan assets, 1/1/X9 Fair value of plan assets 12/31/X9 2,525,000 Projected benefit obligation, 1/1/X9 3,500,000 Projected benefit obligation, 12/31/X9 3,850,000 Unrecognized net losses 420,000 The average remaining service period of Rhino's employees is 20 years. What is the net loss amortization that Rhino will include in its 2019 net periodic pension cost? a) $0 b) $1,750 d) $3,500 d) $21,000 January, 20KS, Loch Co s ed a son plan covering all employees and contributed 400,000 to the plan At December 31, 2005, och determined that the os service d e costs on the plan were 20,000. The expected and the actual rate of return on an assets for 20 w 10%. There are no other component of Lot's pension expense. What should och reports accrued on costisits December 31, 2015 balance sheet? $720000 12. Colombo Enterprises has a defined benefit person plan. At the end of the reporting year, the following data were available beginning P30, $75,000 service cost, $14,000: Interest cost $6,000: be paid for the year. $9,000, ending PBO, 589,000, and the expected return plan t s, $10,000. There were no other person related costs. The journal entry to record the annual pension costs will include a debit to pension expense for: a) b) c) d) $20,000 $15.000 $12,000 $10,000 13. The amortization of a ne gain has what effect on pension expense? a) Decreases it b) Has no effect on it. increases it but only by the amount over 10% of the PBOI d) increases it regardless of the amount). Question CPA-01218 14. Stock options would generally be used in the calculation of: Basic Diluted e ines persone Yes a) No b) No c) Yes d) Yes Yes 15. The calculation of diluted earnings per share assumes that stock options were exercised and that the proceeds were used to: a) Buy common stock as an investment. b) Retire preferred stock. Buy treasury stock d) Increase net income. and distribution stack duded offered to his dutive should be Deducted from net income for a perd ered to b e Deducted to th e Question CPA-01201 1 When computing the weighted average of common shares outstanding for basic rings per share a nored Renged whether they are divers Recognired only if they are antidilutive econd they are the e Question CPA-05417 19. Jen Cohad 200.000 shares of common stock and 20,000 shares of 10N 5100 par value cumulative preferred stock, No dividends on common stock were declared during the year Netice was $2,000,000, What was Jen's basic earnings per share? 2,og- on a) $9.00 bi $9.09 20,00 c) $10.00 d) $1111 Question CPA-04775 Jv 20. During the current year, Comma Co. had outstanding: 25,000 shares of common stock, 8,000 shares of $20 par, 10% cumulative preferred stock and 3.000 bonds that are $1,000 par and 9% convertible. The bonds were originally issued at par, and each bond was convertible into 30 shares of common stock. During the year, net income was $200,000, no dividends were declared, and the tax rate was 30%. What amount was comma's basic earnings per share for the current year? a) $3.38 b) $7.36 c) $7.55 d) $8.00 Question CPA 0121 2 2 Sones Corp's capital structure was as follow December 31 1988 Outstanding shares of Mock: 110,000 Convertible preferred 10.000 convertible bonds $1,000,000 110.000 $1,000,000 During 1988, Jones paid dividends of $8.00 per share on its preferred vock The preferred shares se convertible inte 20.000 shares of common stock. The bonds are convertible into 30,000 shares of common stock. Net Income for 1988 i S850,000. Assume that the income tax rates 30% The dated earnings per share for 1988: a) b) c) d) $5.48 $5.66 $5.81 $6.26 Question CPA-01213 22. Poe Co. had 300,000 shares of common stock issued and outstanding at December 31, 1968. No common stock was issued during 1989. On January 1, 1989, Poe issued 200,000 shares on non convertible preferred stock. During 1989, Poe declared and paid $75,000 cash dividends on the common stock and $60,000 on the preferred stock. Net Income for the year ended December 31, 1969 was $330,000. What should be Poe's 1989 earnings per common share? a) b) c) d) $1.10 $0.90 $0.85 $0.65 Question CPA-01 102 EPS (Chapter 4) 23. Deck Co. had 120,000 shares of common stock outstanding at January 1 1998. On July 1, 1998, it issued 40,000 additional shares of common stock. Outstanding all year were 10,000 shares on nonconvertible Cumulative preferred stock. What is the number of shares that Deck should use to calculate 1998 earnings per share? a) 140,000 b) 150,000 c) 160,000 d) 170,000 Question CPA 01203 The following information pertains to let Corp.'s outstanding stock for 1992 Common stock, Spar value Shares outstanding 1/1/97 2-for 1 stock split, 4/1/92 20.000 Shares issued, 7/1/92 10,000 Preferred stock. $10 par value, 5% cumulativu Shares outstanding 1/1/92 4,000 What are the number of shares jet should use to calculate 1992 earnings pers a) b) c) d) 40,000 45,000 50,000 54,000 Question CPA-05446 25. The following information pertains te Cell Co., a company whose common stock trades in a public market: Shares out at 11 100,000 Stock dividend at 3/31 24,000 Stock Issuance at 6/30 5,000 What is the weighted average number of shares Cell should use to calculate its basic earnings per share for the year ended December 317 a) b) c) d) 120,500 122.000 126,500 129,000 Questo CPA 073 1. Interest cost included in the net pension cost recognized for a per defined benefit pension plan resents the Shortage between the expected and returns on plan assets. h) increase in the projected benet a tion due to the passage of time c) increase in the fair value of an assets due to the passage of time d) Amortization of the discount on recognised prior service costs. Question CPA 00699 2. Visor Co maintains a defined benet pension plan for its employees. The Visor's net periodic pension cost is mesured using the a) Unfunded accumulated benefit obligation b) Unfunded vested benefit obligation Projected benefit obligation d) Expected return on plan assets Question CPA-00910 3 On July 31, 1991, Tem Co. amended its single employee defined benefit plan by granting increased benefits for services provided prior to 1991. This prior service cost will be reflected in the financial statements) for: al Years before 1991 only. b) Year 1991 only. Year 1991, and years before and following 1991 d) Year 1991, and following years only. Pensions (Chapter 101 Question CPA-00681 Jan Corp. amended its defined benefit pension plan, granting a total credit of $100,000 to four employees for services rendered prior to the plan's adoption. The employees, A, B, C and D, are expected to retire from the company as follows: "A" will retire after three years. "B" and "C" will retire after five years "D" will retire after seven years. What is the amount of prior service cost amortization in the first year? a) So b) $5,000 c) $20,000 d) $25,000 Out OP 2,000 years in the ne w $2.000 dos S000 Question C ORES The 6O 16 werd Carpet Pred bacon Unded a nd pension 12.000.000 2000 7.000.000 2,550,000 Unrecogid prior service cost What is the funded status of Ward's pension plan at May 31, 1990? 55.000.000 underfunded $5.000.000 evrunded $7.500,000 underfunded $7.500.000 everfunded. d Question ORA-00878 7. The following information pertains to Sede Co.'s pension plan Actuarial estimate of projected benefit obligation at 1/1/19 $72.000 Assumed discount rate 10N Service costs for 1989 1000 Pension benefits paid during 1909 15,000 che in actuarial estimates occurred during 10 sede projected benefit obligation December 31, 1969 was $84.200 575.000 $79,200 d) $82.200 Question CPA-0436 The following information pertains to Sparta Co.'s defined be Discount rate Expected rate of return Average service life 10% 12 years At January 1, 1992: Projected benefit obligation Fair value of pension plan assets Unrecognized prior service cost Unamortized pension gain $600.000 720,000 240 COO 96.000 At December 31, 1992: Projected benefit obligation Fair value of pension plan assets 910.000 825,000 Service cost for 1992 was $90,000. There were no contributions made or benefits paid during the year. Sparta uses the straight line method of amortisation over the maximum period permitted. Amount to Be Calculated . Interest cost. a) 1,000 b) 2.000 c) 5.000 d) 48,000 Question CPA04366 The following information pertanto SpaCosted bent sensor Discount rate ected rate of return Average service life 12 years Al January 1, 1992: Projected benefit obligation Fair value of pension plan assets Unrecognized prior service cost Unamortized pension gain 240.000 96,000 At December 31, 1992: Projected benefit obligation Fair value of pension plan assets 910.000 825,000 Service cost for 1992 was $90,000. There were contributions made or benefits paid during the year Sparta uses the straight-line method of amortization over the maximum period permitted Amount to be Calculate: Amortization of prior service costs. a) b) c) d) e) $1.000 $2,000 $5.000 $10,000 $20,000 Question CPA-05402 10. In 20X9, Rhino Robots Inc. has the following information related to its defined benefit pension plan: $2.130.000 Fair value of plan assets, 1/1/X9 Fair value of plan assets 12/31/X9 2,525,000 Projected benefit obligation, 1/1/X9 3,500,000 Projected benefit obligation, 12/31/X9 3,850,000 Unrecognized net losses 420,000 The average remaining service period of Rhino's employees is 20 years. What is the net loss amortization that Rhino will include in its 2019 net periodic pension cost? a) $0 b) $1,750 d) $3,500 d) $21,000 January, 20KS, Loch Co s ed a son plan covering all employees and contributed 400,000 to the plan At December 31, 2005, och determined that the os service d e costs on the plan were 20,000. The expected and the actual rate of return on an assets for 20 w 10%. There are no other component of Lot's pension expense. What should och reports accrued on costisits December 31, 2015 balance sheet? $720000 12. Colombo Enterprises has a defined benefit person plan. At the end of the reporting year, the following data were available beginning P30, $75,000 service cost, $14,000: Interest cost $6,000: be paid for the year. $9,000, ending PBO, 589,000, and the expected return plan t s, $10,000. There were no other person related costs. The journal entry to record the annual pension costs will include a debit to pension expense for: a) b) c) d) $20,000 $15.000 $12,000 $10,000 13. The amortization of a ne gain has what effect on pension expense? a) Decreases it b) Has no effect on it. increases it but only by the amount over 10% of the PBOI d) increases it regardless of the amount). Question CPA-01218 14. Stock options would generally be used in the calculation of: Basic Diluted e ines persone Yes a) No b) No c) Yes d) Yes Yes 15. The calculation of diluted earnings per share assumes that stock options were exercised and that the proceeds were used to: a) Buy common stock as an investment. b) Retire preferred stock. Buy treasury stock d) Increase net income. and distribution stack duded offered to his dutive should be Deducted from net income for a perd ered to b e Deducted to th e Question CPA-01201 1 When computing the weighted average of common shares outstanding for basic rings per share a nored Renged whether they are divers Recognired only if they are antidilutive econd they are the e Question CPA-05417 19. Jen Cohad 200.000 shares of common stock and 20,000 shares of 10N 5100 par value cumulative preferred stock, No dividends on common stock were declared during the year Netice was $2,000,000, What was Jen's basic earnings per share? 2,og- on a) $9.00 bi $9.09 20,00 c) $10.00 d) $1111 Question CPA-04775 Jv 20. During the current year, Comma Co. had outstanding: 25,000 shares of common stock, 8,000 shares of $20 par, 10% cumulative preferred stock and 3.000 bonds that are $1,000 par and 9% convertible. The bonds were originally issued at par, and each bond was convertible into 30 shares of common stock. During the year, net income was $200,000, no dividends were declared, and the tax rate was 30%. What amount was comma's basic earnings per share for the current year? a) $3.38 b) $7.36 c) $7.55 d) $8.00 Question CPA 0121 2 2 Sones Corp's capital structure was as follow December 31 1988 Outstanding shares of Mock: 110,000 Convertible preferred 10.000 convertible bonds $1,000,000 110.000 $1,000,000 During 1988, Jones paid dividends of $8.00 per share on its preferred vock The preferred shares se convertible inte 20.000 shares of common stock. The bonds are convertible into 30,000 shares of common stock. Net Income for 1988 i S850,000. Assume that the income tax rates 30% The dated earnings per share for 1988: a) b) c) d) $5.48 $5.66 $5.81 $6.26 Question CPA-01213 22. Poe Co. had 300,000 shares of common stock issued and outstanding at December 31, 1968. No common stock was issued during 1989. On January 1, 1989, Poe issued 200,000 shares on non convertible preferred stock. During 1989, Poe declared and paid $75,000 cash dividends on the common stock and $60,000 on the preferred stock. Net Income for the year ended December 31, 1969 was $330,000. What should be Poe's 1989 earnings per common share? a) b) c) d) $1.10 $0.90 $0.85 $0.65 Question CPA-01 102 EPS (Chapter 4) 23. Deck Co. had 120,000 shares of common stock outstanding at January 1 1998. On July 1, 1998, it issued 40,000 additional shares of common stock. Outstanding all year were 10,000 shares on nonconvertible Cumulative preferred stock. What is the number of shares that Deck should use to calculate 1998 earnings per share? a) 140,000 b) 150,000 c) 160,000 d) 170,000 Question CPA 01203 The following information pertains to let Corp.'s outstanding stock for 1992 Common stock, Spar value Shares outstanding 1/1/97 2-for 1 stock split, 4/1/92 20.000 Shares issued, 7/1/92 10,000 Preferred stock. $10 par value, 5% cumulativu Shares outstanding 1/1/92 4,000 What are the number of shares jet should use to calculate 1992 earnings pers a) b) c) d) 40,000 45,000 50,000 54,000 Question CPA-05446 25. The following information pertains te Cell Co., a company whose common stock trades in a public market: Shares out at 11 100,000 Stock dividend at 3/31 24,000 Stock Issuance at 6/30 5,000 What is the weighted average number of shares Cell should use to calculate its basic earnings per share for the year ended December 317 a) b) c) d) 120,500 122.000 126,500 129,000