Q1. The following information relates to Nazarali Inc. (Nazarali) and its defined-benefit pension plan for the year:
Contributions
| $3.0 million
| Reported pension expense
| $2.8 million
| Economic pension expense
| $3.1 million
|
Based on the information above, which of the following statements is most accurate?
A) There is a reduction in the overall pension obligation of $100,000.
B) There is a source of borrowing of $100,000.
C) There is a reduction in the overall pension obligation of $200,000.
Q2. Consider a situation at a firm where the differences in its cash flow and economic pension expense are considered material to
the financial statements. The relevant tax rate is 30%. The expected return on plan assets is $120,000, interest cost is $85,000,
employer’s contribution is $215,000, service cost is $450,000, and the actual return on plan assets is $50,000. Based on the
information provided and for analytical purposes only, which of the following statements is most appropriate?
A) There is a reclassification of $270,000 from operating cash flow to financing cash flow.
B) There is a reclassification of $189,000 from operating cash flow to financing cash flow.
C) There is a reclassification of $140,000 from operating cash flow to financing cash flow.
Q3. With regards to a firm’s post-retirement healthcare plan, which of the following statements about its cash flows is least
accurate?
A) Cash flows occur when the benefits are paid.
B) Cash flows are reported as operating activities.
C) Cash flows occur when the firm makes contributions to the plan.
[此贴子已经被作者于2009-1-17 14:29:12编辑过] | 
发表于 2009-1-17 14:26
| 
