A company that maintains a defined-benefit pension plan for its employees should report a pension asset or liability on each balance sheet date equal to the

Question

Quizplus · Accepted Answer

The funded status relative to the projected benefit obligation is the difference between the plan's assets and liabilities, and is the most accurate reflection of the plan's financial position. Therefore, it provides the basis for reporting a pension asset or liability on the balance sheet.

A Company That Maintains a Defined-Benefit Pension Plan for Its