CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

ABC Co. uses a defined benefit pension plan. At year-end the pension obligation is $27.4 million and plan assets are $24.5 million. ABC's balance sheet will report ______.
A. a net asset (prepaid pension cost) of $2.9 million
B. a net pension liability of $2.9 million
C. nothing. Only footnote disclosure is required.

User Contributed Comments 1

User Comment
ramdabom Assumes there are no amortizations of PSC, Actuarial Gains/Losess, etc.
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