Postretirement benefits consist of payments by employers 1. In a finance lease, the amount capitalized is the a. sum of the lease payments over the life of the lease. b. fair value of the leased asset on the date the lease is signed. c. present value of the lease payments. d. future value of the asset as of the lease termination date. 2. Postretirement benefits consist of payments by employers to retired employees for a. health care and life insurance only. b. health care and pensions only. c. life insurance and pensions only. d. health care, life insurance, and pensions. 3. The paid absence that is most commonly accrued is a. voting leave. b. vacation time. c. maternity leave. d. disability leave. 4. Larson Company has thirty employees who each earn $120 per day. If they accumulate vacation time at the rate of 1.5 vacation days for each month worked, the amount of vacation benefits that should be accrued at the end of the month is a. $360. b. $3,600. c. $5,400. d. $540. 5. An employer’s estimated cost for postretirement benefits for its employees should be a. recognized as an expense when paid. b. recognized as an expense during the employees’ work years. c. recognized as an expense during the employees’ retirement years. d. charged to the goodwill account because providing employees with benefits generates employee goodwill. Economics Assignment Help, Economics Homework help, Economics Study Help, Economics Course Help
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