CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Which of the following best describes an overfunded pension plan?

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.
Correct Answer: A

The PBO is less than the value of pension plan assets in an overfunded pension plan.

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."
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