T.Y B.COM
SEMESTER - 6
FINANCIAL REPORTING
(FR)
MCQS - UNIT III
CHAPTER - 2 = EMPLOYEES BENEFITS
1. Gratuity and Pension are examples of
(A) Short-term employees benefits
(B) Post-employment benefits
(C) Long-term employees benefits
(D) Termination benefits
2. Actuarial gain or loss is the different between
(A) Fair-value of plan assets at the beginning and the end of the year
(B) Expected return on plan assets and actual return on plan assets.
(C) Present value of defined benefit obligation at the beginning and at the end of the year
(D) Current service cost and past service cost.
3. Basic principles for accounting short-employee benefits are that the undiscounted amount of short term employee benefits should be recognized when the employee _______ service.
(A) Resign from the
(B) Dismissed from the
(C) Rendered
(D) Retired from the
4. _______ arises when an enterprise introduces a defined benefit plan or changes in the benefits payable under an existing defined benefit plan.
(A) Interest Cost
(B) Current Service Cost
(C) Past Service Cost
(D) Auctorial Gain and Losses
5. _________ benefits are conditional upon fulfillment of future employment conditions.
(A) None vested
(B) Short term
(C) Vested
(D) Long term
6. _________ this represents paid — leave - of -absence, subject to the proviso that unveiled portion cannot be carried forward.
(A) Accumulating Compensating Absences
(B) Non-accumulating Compensating Absences
(C) Both
(D) None
7. Non-accumulating Compensating Absence is popularly called as
(A) Casual leave
(B) Earned leave
(C) Sick leave
(D) All of the above
8. ________ benefits are employee benefits (other than termination benefits) which are payable after the completion of employment,
(A) Pre — employment
(B) On job
(C) Post employment
(D) None
9. Post employee benefits include termination benefits.
(A) Does
(B) Both
(C) Does not
(D) None
10. Accounting for defined benefit plans is ________ because actuarial assumptions are required to measure the obligation and the expense.
(A) Simple
(B) A verage
(C) Complex
(D) All of the above
11. __________ plan is a plan where employer and employee contribute a fixed sum to the plan and some are invested in separate entity.
(A) Defined benefits
(B) Defined contribution
(C) Employees benefits
(D) All of the above
12. ________ Plans usually includes participation of two or more unrelated employee by creating independent entity.
(A) Multi-employer
(B) Insured benefits
(B) State
(D) All of the above
13. ________ plan are established by legislation to cover all enterprises or all enterprises of a specific industry and are operated by Government.
(A) Multi employer
(B) Insured benefits
(C) State
(D) All of the above
14. Provident Fund administrated by the Govt. of Indiais an example of ________ plan.
(A) Multi employer
(B) Insured benefits
(C) Slate
(D) All of the above
15. ________ is the increase in the present value of the defined benefit obligation resulting from employee service in the current period
(A) Interest cost
(B) Current service cost
(C) Post service cost
(D) All of the above
16. To determine the present value of its defined benefit obligations and the related current service cost and where applicable past service cost and enterprise should use the
(A) Discounted cash flow method
(B) Present value method
(C) Projected Unit Credit Method
(D) Projected cash flow method
17. _______ are enterprises best estimates of the variables that will determine the ultimate cost of providing post employment benefits.
(A) Actuarial assumption
(B) Employer’s. Assumptions
(C) Accountant's assumption
(D) All of the above
18. The discount rate should be determined by reference to market yield at the balance sheet date on
(A) Company's shares
(B) Company's debentures
(C) Government bonds
(D) All of the above
19. Actuarial gains and losses should be recognized in the statement of profit and loss as income or expenses.
(A) Immediately
(B) At the end of the year
(C) After one year
(D) None
20. _________ is measured as the change in the liability resulting from the amendment.
(A) Interest Cost
(B) Current Service Cost
(C) Post service cost
(D) All of the above
21. The difference between the expected return on plan assets and the actual return on plan assets is
(A) An actuarial gain or loss
(B) Gain or loss on plan assets
(C) Both
(D) None
22. As per AS-15, a provident fund which guarantees a specified rate of return is a:
(A) Defined Benefit Plan
(B) Defined Contribution Plan
(C) Insured Benefit Plan
(D) None of a, b and c
23. Which of the following is not a type of Defined Contribution Plans?
(A) Employed plans
(B) Multi-employer plans
(C) State Plans
(D) Insured Benefit
24. To measure obligation-under defined benefit plan, the discount rate should tie determined by reference to:
(A) Market yield on Government bonds at the beginning of the year
(B) Market yield on Government bonds at the balance sheet date
(C) Higher of (a) or (b) above
(D) Lower of (a) or (b) above
25. Arise when an enterprise introduces a defined benefit plan or changes in the benefits payable under an existing defined benefit plan.
(A) Interest cost
(B) Current service cost
(C) Past service cost
(D) Actuarial gains and losses
26. AS-15 applies to accounting of all employee benefits except
(A) Employee Stock Options
(B) Salary and Wages
(C) Gratuity and Pension
(D) Social Security Contribution
27. _________ benefits are recognized as an expense immediately.
(A) Short term benefits
(B) Termination
(C) Both
(D) None
28. Benefits in the form of employee share - based payment like Stock option ______ covered by this standard.
(A) Are
(B) Both
(C) Are not
(D) None
29. _______ Employee benefits are employee benefits that are not conditional on future employment.
(A) Non— vested
(B) Short term
(C) Vested
(D) Long term
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