Asked by Alison Piscitelli on Jun 24, 2024
Verified
The journal entry a company uses to record pension rights that have not been funded for its salaried employees at the end of the year is
A) debit Salaries Expense; credit Cash
B) debit Pension Expense; credit Unfunded Pension Liability
C) debit Pension Expense; credit Unfunded Pension Liability and Cash
D) debit Pension Expense; credit Cash
Unfunded Pension Liability
The gap between the projected benefits of a pension plan and the assets available to fund those benefits.
Pension Rights
The entitlements that employees accumulate over time that entitle them to receive benefits from a pension plan upon retirement.
Salaries Expense
The total amount recorded by a business for the wages and salaries paid to employees during a reporting period.
- Acknowledge the process for handling and logging benefits provided to employees, such as holiday pay and retirement benefits.
Verified Answer
Learning Objectives
- Acknowledge the process for handling and logging benefits provided to employees, such as holiday pay and retirement benefits.
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