CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

The Prepaid/Accrued Pension Cost account balance is the difference between the

A. accumulated benefit obligation balance and the plan assets balance.
B. projected benefit obligation balance and the plan assets balance.
C. vested benefit obligation balance and the plan assets balance.
Correct Answer: B

User Contributed Comments 5

User Comment
danlan2 Is this the pension expense?
katybo This is the net pension liability ( or net pension asset, if Plan Assets > PBO). It is not equal to pension expense.
yly14 a.k.a. funding status of the plan
dblueroom I thought B was funded status. Ok, it makes some sense, because essentially changes in PBO would be current pension expense and contribution is captured in plan asset (and benefits paid is in both, so cancel each other out). So from now on we should stop seeing prepaid/accrued pension cost accounts, since funded status is recognized on B.S.
dream007 sounds like funded status to me...
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