Question
Asked Jan 22, 2020
16 views

Explain how cash-basis accounting for pension plans differs
from accrual-basis accounting for pension plans.
Why is cash-basis accounting generally considered unacceptable
for pension plan accounting?

check_circle

Expert Answer

Step 1

Under cash basis of accounting pension cost are recognised on the basis of cash paid by the employer towards the pension fund in a given period and hence funding of pension plan forms the basis of expense reco...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: In 2016, Ryan Management collected rent revenue for 2017 tenant occupancy. For financial reporting, ...

A: Deferred tax is an amount that is, computed on the basis of tax liability on the income as per incom...

question_answer

Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has amorti...

A: Click to see the answer

question_answer

Q: Explain how a non-consolidated subsidiary can be aform of off-balance-sheet financing.

A: Off-balance sheet financing is a form of borrowing money wherein the company is not required to spec...

question_answer

Q: Identify the five steps in the revenue recognition process.

A: The revenue recognition principle refers to the revenue that should be recognized in the time period...

question_answer

Q: In 2016, Western Transport Company entered into the treasury stock transactions described below. In ...

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issu...

question_answer

Q: How are deferred tax assets and deferred tax liabilities reported in a classified balance sheet?

A: When the Income Tax Expense account is more than the Income Tax Payable account, this difference is ...

question_answer

Q: Explain a principal-agent relationship and its significanceto revenue recognition.

A: Click to see the answer

question_answer

Q: White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat ...

A: Process costs It is a method of cost accounting, which is used where the production is continuous, a...

question_answer

Q: Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,000 shares o...

A: Prepare journal entry to record the gain (loss) on investment at the date of declaration of property...