If the Fair Value of Pension Plan Assets Exceeds the Present

question 146

Multiple Choice

If the fair value of pension plan assets exceeds the present value of the pension obligation,a company reports

• A)a net pension liability on the balance sheet.
• B)a net pension asset on the balance sheet.
• C)nothing on the balance sheet.
• D)a long footnote only.
• E)both B and D

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Definitions:

High-Risk Category

A classification used to indicate a heightened potential for developing a disease or facing a specific health danger.

Body Weight

The total mass or weight of an individual’s body.

Body-Fat Percentage

A measure of the proportion of fat to the total body weight.

Waist Circumference

A measurement around the smallest area of the waist, used as an indicator of health risks associated with excess fat around the stomach.