The Funded Status of a Defined Benefit Pension Plan Is

question 31

Multiple Choice

The funded status of a defined benefit pension plan is reported in the balance sheet.

• A) As an asset, if the pension plan is underfunded.
• B) As a liability, if the pension plan is underfunded.
• C) Because it measures the minimum pension plan liability.
• D) When it exceeds the projected benefit obligation.

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Definitions:

Credit

A bookkeeping entry that increases the value of liabilities or equity accounts, or decreases the value of an asset or expense account.

Journal

A detailed record where all financial transactions of a business are initially recorded.

Chronological Record

A record of events or transactions organized in the order they occurred over time.

Transactions

The exchange or transfer of goods, services, or funds between two or more parties.