If there is no line item for prepaid pension assets or unfunded pension liabilities on a firm's balance sheet,this means the firm's pension plan is fully funded.

Question

Quizplus · Accepted Answer

The absence of a line item for prepaid pension assets or unfunded pension liabilities on a firm's balance sheet does not necessarily mean that the firm's pension plan is fully funded. The firm may use a different accounting method or may not disclose this information in their financial statements. It is important to review the notes to the financial statements and the firm's pension plan disclosures to fully understand the funding status of their pension plan.

If There Is No Line Item for Prepaid Pension Assets