To Determine Whether a Pension Plan Is Over-Funded or Under-Funded

Multiple Choice

To determine whether a pension plan is over-funded or under-funded, a company must compare the:

A) fair market value of the pension plan assets to the accumulated benefit obligation.
B) cost of the pension plan assets to the accumulated benefit obligation.
C) accumulated benefit obligation to the plan's anticipated obligations.
D) fair market value of the pension plan assets to the net income on the Income Statement.