Pension intensity of a company can be measured by expressing the pension plan assets and the pension obligation separately as:
A)a percentage of its total liabilities.
B)a percentage of its total assets.
C)a percentage of its net income.
D)a percentage of its shareholders' equity.

Question

Quizplus · Accepted Answer

Pension intensity is typically measured as a percentage of a company's total assets, as it reflects the impact of the pension plan on the overall financial health of the company. Expressing the pension plan assets and obligations as a percentage of total liabilities, net income, or shareholders' equity would not give an accurate representation of the pension plan's significance to the company.

Pension Intensity of a Company Can Be Measured by Expressing