新用戶掃碼下載
掃碼下載APP
及時(shí)接收最新考試資訊及
備考信息
2016年美國(guó)CPA練習(xí)題精選：Financial 8
A company has an underfunded defined benefit pension plan. During the current year, the company uses the years-of-service method to amortize its prior service cost. What effect will the amortization of prior service cost have on the company's current-year financial statements?
a. Total liabilities will be decreased.
b. Current period expenses will be decreased.
c. Net income will be increased.
d. Other comprehensive income will be increased.
答案：D
Explanation
Choice "d" is correct. Using the years of service method, the prior service cost is amortized to pension expense over the remaining service period of employees expected to receive benefits under the pension plan. The offsetting credit is to other comprehensive income which results in an increase to other comprehensive income.
Choice "a" is incorrect. The amortization of prior service costs will not decrease total liabilities. The amortization of prior service costs increases pension expense and increases other comprehensive income.
Choice "c" is incorrect. Net income is not increased because of the amortization of prior service cost. Net income is actually decreased as a result of the amortization of prior service costs because of the increase in pension expense.
Choice "b" is incorrect. Current period expenses are not decreased as a result of the amortization of prior service cost, but increased because of the increase to pension expense.
【我要糾錯(cuò)】 責(zé)任編輯：小瑩子
推薦閱讀
相關(guān)資訊
章小炎主講：《財(cái)務(wù)會(huì)計(jì)與報(bào)告》免費(fèi)聽(tīng)
李向祎主講：《審計(jì)與鑒證》免費(fèi)聽(tīng)
限時(shí)免費(fèi)資料
-
思維導(dǎo)圖
-
學(xué)習(xí)計(jì)劃
-
科目特點(diǎn)
-
報(bào)考指南
-
歷年樣卷
-
財(cái)會(huì)英語(yǔ)
新用戶掃碼下載
京公網(wǎng)安備 11010802044457號(hào)