Which of the Following Is a Correct Statement Concerning the Reporting

question 195

Multiple Choice

Which of the following is a correct statement concerning the reporting of the pension plan on the face of the employer's balance sheet?

• A) Only the plan assets are separately reported.
• B) Only the PBO is separately reported.
• C) Both the PBO and the plan assets are separately reported.
• D) Neither the PBO nor the plan assets is separately reported.

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Definitions:

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific main account in the general ledger, used to organize and manage specific types of transactions.

Financial Statement

Reports that convey the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Normal Balance

The typical side (debit or credit) on which an account increases, based on its classification in the accounting equation.

Account Category

A way to organize various types of accounts in accounting, such as assets, liabilities, equity, revenue, and expenses, based on their nature.