15. When a corporation tells an employee that that are covered by a \"defined be

Question

15. When a corporation tells an employee that that are covered by a "defined benefit pension plan", this indicate a. accounting for annual pension expense is simple. b. the employer guarantees the employees certain benefits upon retirement. c. actuarial computations are unnecessary. d. retirement payments are based on the amount accumulated in the pension fund. 16. Pick the sentence below that once happens qualifies as a capital lease? a. Monthly lease on office space that can be canceled with 30 days' notice b. Five-year lease on equipment with an option to renew for one more year c. Three-year lease on a company vehicle d. Seven-year lease on a machine that has a seven-year useful life 17. The entry to record the amortization of a premium on bonds payable on an interest payment date would a. debit to Premium on Bonds Payable and a credit to Interest Revenue b. debit to Interest Expense and a credit to Premium on Bond Payable c. debit to Interest Expense and Premium on Bonds Payable and a credit to Cash d. a debit to Bonds Payable and a credit to Interest Expense

Explanation / Answer

Q15.

Answer-Retirement payment are based on the amount accumulated in pension fund. As per the Income tax act 1961, it is said that the peron who commute his pension for a lumpsum value will get some tax benifit. Moreover the retirement pension is that amount deductible from the salary of the employee per month and gets accumulated in the pension fund which is given to the employee at the time of retirement.

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