Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 21 of 24
Which of the following best describes an overfunded pension plan?
B. The VBO is less than the value of pension plan assets.
C. The ABO is less than the value of pension plan assets.
D. The pension cost is less than the contribution to pension plan assets.
A. The PBO is less than the value of pension plan assets.
B. The VBO is less than the value of pension plan assets.
C. The ABO is less than the value of pension plan assets.
D. The pension cost is less than the contribution to pension plan assets.
User Contributed Comments 1
| User | Comment |
|---|---|
| josepe | CFA Textbook, p. 137, "For pension plans, the funded status is measured as the difference between the fair value of plan assets and the PBO." |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
explain and calculate measures of a defined benefit pension obligation (i.e., present value of the defined benefit obligation and projected benefit obligation) and net pension liability (or asset);
describe the components of a company's defined benefit pension costs;
explain and calculate the effect of a defined benefit plan's assumptions on the defined benefit obligation and periodic pension cost;
CFA® 2025 Level II Curriculum, Volume 2, Module 11.