ExpertMedium1 markMultiple Choice
CPA · Question 40 · Area II: Technical Accounting
Which of the following is a required financial statement for a Defined Benefit Pension Plan?
Which of the following is a required financial statement for a Defined Benefit Pension Plan?
Answer options:
A.
Statement of Changes in Net Assets Available for Benefits
B.
Statement of Comprehensive Income
C.
Statement of Cash Flows
D.
Balance Sheet
How to approach this question
Pension plans report 'Net Assets Available for Benefits' and the 'Changes' therein. They do not produce a Cash Flow statement.
Full Answer
A.Statement of Changes in Net Assets Available for Benefits✓ Correct
ASC 960 requires defined benefit plans to present a Statement of Net Assets Available for Benefits and a Statement of Changes in Net Assets Available for Benefits.
Common mistakes
Assuming standard business statements (Income Statement, Cash Flows) apply.
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