O'Reilly logo

Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

EXERCISE G-4

Purpose: (L.O. 1 thru 3) This exercise will quiz you about terminology used in this appendix.

A list of accounting terms with which you should be familiar appears below:

Capital lease Operating lease
Contingent liability Pension plan
Defined-benefit plan Postretirement benefits
Defined-contribution plan

Instructions

For each item below, enter in the blank the term that is described.

  1. ___________________________________ A potential liability that may become an actual liability in the future.
  2. ___________________________________ A contractual arrangement giving the lessee temporary use of the property with continued ownership of the property by the lessor.
  3. ___________________________________ A contractual arrangement that transfers substantially all the benefits and risks of ownership to the lessee so that the lease is in effect a purchase of the property.
  4. ___________________________________ Payments by employers to retired employees for health care, life insurance, and pensions.
  5. ___________________________________ An agreement whereby an employer provides benefits to employees after they retire.
  6. ___________________________________ A pension plan in which the employer's contribution to the plan is defined by the terms of the plan.
  7. ___________________________________ A pension plan in which the benefits that the employee will receive at retirement are defined by the terms of the plan.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required