111.An aid in internal control over payrolls that indicates employee attendance is
a.time card
b.voucher system
c.payroll register
d.employee's earnings record
112.A pension plan that requires the employer to make annual pension contributions, with no promise to employeesregarding future pension payments, is termed
a.funded
b.unfunded
c.defined benefit
d.defined contribution
113.During its first year of operations, a company granted employees vacation privileges and pension rights estimated ata cost of $21,500 and $15,000. The vacations are expected to be taken in the next year and the pension rights areexpected to be paid in the future 5–30 years. What is the total cost of vacation pay and pension rights to berecognized in the first year?
a. $15,000
b. $36,500
c. $6,500
d. $21,500
114.A pension plan that promises employees a fixed annual pension benefit, based on years of service andcompensation, is called a(n)
a.defined contribution plan
b.defined benefit plan
c.unfunded plan
d.compensation plan
115.Vacation pay payable is reported on the balance sheet as a(n)
a.current liability or long-term liability, depending upon when the vacations will be taken by employees
b.current liability
c.expense
d.long-term liability
116.An unfunded pension liability is reported on the balance sheet as
a.current liability
b.owner's equity
c.long-term liability
d.current liability or long-term liability, depending upon when the pension liability is to be paid
117.The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is
a.debit Vacation Pay Expense; credit Vacation Pay Payable
b.debit Vacation Pay Payable; credit Vacation Pay Expense
c.debit Salary Expense; credit Cash
d.debit Salary Expense; credit Salaries Payable
118.The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of theyear is
a.debit Salary Expense; credit Cash
b.debit Pension Expense; credit Unfunded Pension Liability
c.debit Pension Expense; credit Unfunded Pension Liability and Cash
d.debit Pension Expense; credit Cash
119.The journal entry a company uses to record partially funded pension rights for its salaried employees at the end ofthe year is
a.debit Salary Expense; credit Cash
b.debit Pension Expense; credit Unfunded Pension Liability
c.debit Pension Expense; credit Unfunded Pension Liability and Cash
d.debit Pension Expense; credit Cash
120.The journal entry a company uses to record pension rights that have
notbeen funded for its salaried employees atthe end of the year is
a.debit Salary Expense; credit Cash
b.debit Pension Expense; credit Unfunded Pension Liability
c.debit Pension Expense; credit Unfunded Pension Liability and Cash
d.debit Pension Expense; credit Cash