CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

To determine the funded status of a pension plan, the reader of a financial statement should refer to the ______.

A. footnote disclosures
B. balance sheet
C. income statement
Correct Answer: B

The balance sheet reports a company's net funded position, with the separate components (i.e., plan assets and plan liabilities) disclosed in the footnotes.

User Contributed Comments 4

User Comment
yly14 prepaid pension expenses are show on the bs, able to determine the funded status of the plan.
quanttrader funded status in balance sheet -- specifics found in footnote.
farhan92 pensions are a liability so on b/s?
davidt876 farhan, the pension could overfunded (assets of plan > PBO) and recorded as an asset, or the pension could be underfunded (assets of plan < PBO) and recorded as a liability
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