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CHAPTER 4: EMPLOYEE BENEFITS AND REPORTING BY RETIREMENT PLANS

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Which of the following is not the identified standard of employee benefits?

a)

Short-term employee benefits

b)

post-employee benefits

c)

other long-term employee benefits

d)

termination benefits

2.

 Defined contribution plans/scheme and defined benefits plan/scheme are classified in ……….

a)

short-term employee benefits

b)

post-employment benefits

c)

other long-term employee benefits

d)

termination benefits

3.

Under defined benefit plans, the entity’s obligation is to provide the agreed benefits to current and former employees.

a)

TRUE

b)

FALSE

4.

The accounting treatment for defined contribution scheme is …….

a)

Complex

b)

Simple

5.

A termination benefit liability is recognized at the earlier of the following dates:

a)

When the employee accepts the offer

b)

When the entity withdraw the offer of those benefits

c)

When the entity recognizes a provision for restructuring costs

d)

When a restriction on the entity’s ability to withdraw the offer takes effect

6.

 Defined benefit obligation (DBO)

a)

DBO is measured at present value, and the changes between the opening balance and closing balance provided by the actuary is analyzed to determine the actuarial gain or loss.

b)

DBO is a liability after deducting any amount already paid.

c)

DBO are all other post-employment benefits plans that may be unfunded, or may be wholly or partly funded.

d)

DBO are employee benefits that are payable after completion of employment retirement benefits, post-employment life insurance and medical care.

7.

Past service costs arise because ..….

a)

unemployment benefits 

b)

an improvement to the pension scheme (plan amendment) or curtailment

c)

recognized immediately in profit or loss

d)

a liability after deducting any amount already paid

8.

 Actuarial gains and losses resulting from remeasurement represent the change in Defined Benefit Obligation and Plan asset, based on actuary’s assumption. Such unrealized gains or losses should be recognized in the …….

a)

Balance sheet

b)

Cash Flow statements

c)

Other Comprehensive Income

9.

When the curtailments should be recognized in the financial statements?

a)

When the settlements are made to or on behalf of plan participants

b)

At the same time as restructuring

c)

When the plan amendment curtailment occurs

d)

When the entity recognizes related restructuring costs/termination benefits

10.

Which of the following given is not categorized under Post-employment benefits

a)

Life insurance

b)

Bonus

c)

Pensions

d)

Medical care