A Company with a Fully Funded Pension Plan

question 103

Multiple Choice

A company with a fully funded pension plan:

• A)Recognizes no pension expense.
• B)Reports no long-term liability for future pension payments.
• C)Does not utilize the services of a trustee to operate the pension plan.
• D)Recognizes pension expense equal to the cash payments made to retirees during the current period.

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Definitions:

Acquires Land

The process by which a company or individual procures land as an asset.

Land

The surface of the earth, including the soil and anything attached to it naturally, used as a fixed asset in accounting, with no depreciation over time.

Closing Costs

Fees and expenses, beyond the price of the property, incurred by buyers and sellers in transferring ownership of real estate.

Property Taxes

Taxes assessed by local governments on real estate and sometimes other assets based on the property's value.