Reference no: EM132888971

Problem 1: The service cost of a defined benefit plan comprises all, except

a. Net interest

b. Current service cost

c. Gain or loss on settlement

d. Past service cost

Problem 2: Trade receivables are classified as current assets if they are reasonably expected to be collected

a. Within one year or within the operating cycle, whichever is longer.

b. Within one year or within the operating cycle, whichever is shorter.

c. Within the normal operating cycle

d. Within one year

Problem 3: Vested benefits

a. usually require a certain minimum number of years of service

b. are not contingent upon additional service under the plan.

c. are those that the employee is entitled to receive even if fired

d. are defined that the employee is entitled to receive even if fired.

Problem 4: What is the treatment of customer's postdated check?

a. Accrued income

b. Considered as cash

c. Accounts receivable

d. Prepaid expense