The schedule of changes in long-term obligations contains an account "net pension obligation." Which of the following describes the event that gave rise to this account?
A) The actual contribution by a proprietary fund was less than the annual required contribution per the actuary.
B) The actual contribution by a governmental fund was less than the annual required contribution per the actuary.
C) The actuarially computed pension liability exceeded the pension plan assets.
D) The actuarially computed pension liability was less than the pension plan assets.

Question

Quizplus · Accepted Answer

The "net pension obligation" arises when a governmental fund's actual contribution is less than the annual required contribution as determined by the actuary.

The Schedule of Changes in Long-Term Obligations Contains an Account