The entry made when cash is set aside to pay for future pension benefits is called an):

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When cash is set aside for future pension benefits, it is considered a funding entry. This entry represents a transfer of assets into a pension fund to ensure that future pension obligations can be met. Adjusting entries are made to update accounts at the end of an accounting period, accrual entries record revenues or expenses that have been earned or incurred but have not yet been recorded, and reclassification entries involve moving amounts within accounts or between accounts. None of these entries accurately describe the process of setting cash aside for future pension benefits.

The Entry Made When Cash Is Set Aside to Pay