1. The present value of the defined benefit obligation is the present value, without deducting
any plan assets, f expected future payments required to settle the obligation resulting from
employee service in the
a. Current periods
b. Current and prior periods
c. Current or prior periods
d. Prior periods
2. it is said that no entry is required when share warrants are issued to existing shareholders
because these warrants are issued usually
a. with consideration
b. without consideration
c. as bonus
d. as stock dividends
3. treasury shares may be reissued as dividends, in which case the _____ of the shares be
charged to retained earnings
a. historical value
b. cost
c. fair value
d. selling price
4. ordinary shares issued as a result of the conversion of a debt instrument to ordinary shares
are incuded from the date
a. it was converted
b. interest ceases to accrue
c. as of the balance sheet
d. prior to the date of the balance sheet
5. in computation of cost of sales the basic rule is –All increases are added and all decreases
are deducted except the changes in
a. earned income
b. unearned income