Question
When is a company underfunded on a defined benefit pension plan?
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Answer
When PBO exceeds the fair value of plan assets.
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Question
Why is a deferred tax liability classified as a liability rather than an expense?
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Answer
It reflects taxes deferred today that will be paid in future periods.
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Question
What accounting pattern creates a deferred tax liability?
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Answer
Taxable income below accounting income from a temporary difference.
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Question
How does a defined benefit pension plan create a non-current balance sheet obligation, unlike a defined contribution plan?
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Answer
A DB plan can create a net pension liability; a DC plan usually does not.
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