What are pension liabilities?
A) Future liabilities resulting from pension commitments made by a corporation
B) Unreasonable relationships between interest expense and recorded liabilities
C) Liabilities that can be used to fraudulently misstate financial statements by underestimating the probability of occurrence
D) A fund that is established for the payment of retirement benefits by the insurance company

Question

Quizplus · Accepted Answer

Pension liabilities refer to the future liabilities resulting from pension commitments made by a corporation to its employees. This liability arises when a company promises its employees a specific amount of retirement benefits. The company must set aside a portion of its current profits to fund these future pension obligations.

What Are Pension Liabilities