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Lostsunrise [7]
4 years ago
7

A gain from changing an estimate regarding the obligation for pension plans will: Multiple Choice Increase assets. Increase liab

ilities. Decrease shareholders' equity. Increase shareholders' equity.
Business
2 answers:
mojhsa [17]4 years ago
5 0

Answer:

Increase shareholders' equity.

Explanation:

When there is a gain from changing an estimate regarding the obligation for pension plans, it indicates that an expenses to be incurred on pension plans has fallen below the expected amount. The lesser expenses an organisation incurred, the higher will be its profit.

Since profit or retained profit is one of the components of the shareholders' equity section of the balance sheet, a higher profit due to gain from changing an estimate regarding the obligation for pension plans will therefore increase the shareholders' equity.

vazorg [7]4 years ago
4 0

Answer:

Increase shareholders' equity.

Explanation:

When there is a change in estimated pension plans it will lead to more revenue for the business and more retained earnings for the business. Retained earnings and stocks make up owner's equity, so this will increase owner equity.

Change in estimate of pension funding can occur when a business moves from defined benefit plans (funded by employees and they bear the risk) to defined contribution plan (employees fund the pension and bear the risk).

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3 years ago
Can a rectangular piece of wrapping paper with an area of 81 square inches have a perimeter of 60? (Hint: Let length=30-w.)
uysha [10]
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3 years ago
Which of the following statements reflects upon the difficulty companies face when requiring international suppliers to follow e
AleksAgata [21]
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5 0
4 years ago
Dog Up! Franks is looking at a new sausage system with an installed cost of $460,000. This cost will be depreciated straight-lin
Anton [14]

Answer:

The Net Present Value (NPV) of this project is <u>$93,405.59</u>.

Explanation:

Note: Find attached the excel file for the calculation of the NPV of this project.

Net present value (NPV) refers to the present value of cash inflows minus the present value of cash outflows over a specified period of time.

On its own, present value (PV) refers the value that a future sum of money or stream of cash flows has now or currently given a specified rate of return. The formula for calculating the PV is given as follows:

PV = FV / (1 + r)^n

Where,

FV = Future value

r = discount rate. This is given as 10% in this question

n = Relevant period, e.g. year

The above explanation and formula together with other stated formulae in the attached excel file is used in calculating the NPV of this project.

Download xlsx
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3 years ago
The adjustment to record supplies used during the period would​ be:
Katen [24]
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