- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 8. Topics in Long-Term Liabilities and Equity
- Subject 5. Financial Reporting for Post-Employment and Share-Based Compensation Plans
CFA Practice Question
In a defined benefit plan, pension expense is not necessarily equal to the firm's cash contribution. True or False?
Correct Answer: True
A firm's contribution payment to the pension plan can be more or less than the actual amount of the pension expense. The funded status is referred to as the "pension plan's economic position."
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