Why are retirement assets listed separately on the balance sheet?
A)Retirement assets often cannot be turned into cash immediately without penalty.
B)Normal withdrawals from pensions are taxable.
C)Normal withdrawals from pensions are nontaxable.
D)Retirement assets have low cash value relative to their face amount.
E)Both a and b above.

Question

Quizplus · Accepted Answer

Retirement assets are listed separately on the balance sheet because they often cannot be turned into cash immediately without penalty (A), and normal withdrawals from pensions are taxable (B), which affects their liquidity and tax implications.

Why Are Retirement Assets Listed Separately on the Balance Sheet