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A Firm Has a $40,000 Balance in Its Pension Liability

Question 46

Multiple Choice

A firm has a $40,000 balance in its pension liability account.This means:


A) the plan is underfunded.
B) accrued pension obligation is less than plan assets at fair value.
C) pension expense recognized to date exceeds total contributions to the pension plan to date.
D) pension expense recognized to date exceeds plan assets at fair value.

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