- CFA Exams
- CFA Level I Exam
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 28. Non-current (Long-term) Liabilities
- Subject 10. Defined Contribution and Defined Benefit Pension 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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