When correcting an accounting error that happened in a fiscal year from before the current fiscal year and that has an impact on net income, we account for the net income effect with a/an ___ to retained earnings. o A Reversing entry 10 B Prior period adjusting entry o c Prospective entry Net income correction O E No entry affecting retained earnings is made During 2016, XYZ company pays $30 million to retirees who are receiving a defined benefit pension. Which of the following is a correct portion of the journal entry to record this economic event? Debit Pension Expense Debit Pension Plan Assets Debit Service Cost O D Debit Pension Plan Obligation Debit OCI--Plan Loss Which of the following does NOT affect cash flow from operations? Interest payments received 1o B Cash dividen Cash dividends paid Cash dividends received o D Interest payments disbursed t Proceeds collected from customers' receivables When calculating the pension obligation, we can calculate the Accumulated Benefit Obligation (ABO), the Vested Benefit Obligation (VBO), or the Projected Benefit Obligation (PBO). Assume 80% of pension benefits are vested. Choose the list below that shows the three options in descending order (highest to lowest). O A ABO, VBO, PBO O B PBO, VBO, ABO O c VBO, PBO, ABO o D PBO, ABO, VBO O E VBO, ABO, PBO VBO, ABO, PBO When correcting an accounting error that happened in a fiscal year from before the current fiscal year and that has an impact on net income, we account for the net income effect with a/an ___ to retained earnings. o A Reversing entry 10 B Prior period adjusting entry o c Prospective entry Net income correction O E No entry affecting retained earnings is made During 2016, XYZ company pays $30 million to retirees who are receiving a defined benefit pension. Which of the following is a correct portion of the journal entry to record this economic event? Debit Pension Expense Debit Pension Plan Assets Debit Service Cost O D Debit Pension Plan Obligation Debit OCI--Plan Loss Which of the following does NOT affect cash flow from operations? Interest payments received 1o B Cash dividen Cash dividends paid Cash dividends received o D Interest payments disbursed t Proceeds collected from customers' receivables When calculating the pension obligation, we can calculate the Accumulated Benefit Obligation (ABO), the Vested Benefit Obligation (VBO), or the Projected Benefit Obligation (PBO). Assume 80% of pension benefits are vested. Choose the list below that shows the three options in descending order (highest to lowest). O A ABO, VBO, PBO O B PBO, VBO, ABO O c VBO, PBO, ABO o D PBO, ABO, VBO O E VBO, ABO, PBO VBO, ABO, PBO
