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Basic Question 4 of 24

In a defined benefit plan, pension expense is not necessarily equal to the firm's cash contribution. True or False?

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Craig Baugh

Craig Baugh

Learning Outcome Statements

explain and calculate measures of a defined benefit pension obligation (i.e., present value of the defined benefit obligation and projected benefit obligation) and net pension liability (or asset);

describe the components of a company's defined benefit pension costs;

explain and calculate the effect of a defined benefit plan's assumptions on the defined benefit obligation and periodic pension cost;

CFA® 2025 Level II Curriculum, Volume 2, Module 11.