How to Calculate the Funded Status of a Pension Plan


Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

A pension fund calculates $100 million in assets and $75 million in projected benefit obligation (PBO). What is the financial statement impact?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. A defined benefit pension plan specifies which of these?

2. Which of these creates a liability on the balance sheet?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

The funded status of a pension plan requires some calculation. These questions will test how much you know about related topics like the financial statement impact in a sample problem and a defined benefit pension plan.

Quiz & Worksheet Goals

You'll need to know about these points:

  • Balance sheet liability
  • The end of period projected benefit obligation in a pension plan
  • Value of the end of period fund assets in a sample problem

Skills Practiced

  • Knowledge application - use your knowledge to answer questions about how to calculate the funded status of a pension
  • Information recall - access the knowledge you've gained regarding what creates balance sheet liabilities
  • Making connections - use your understanding of defined benefit pension plans to recognize what they do and do not specify

Additional Learning

For further insight into the way pension plans work, you can view the lesson called How to Calculate the Funded Status of a Pension Plan. The following topics will be explored:

  • Explanation of a defined benefit pension plan
  • The fair value of plan assets
  • Cost of plan assets with examples
  • Pension benefit obligations