Answer:
A)current liability or a long-term liability, depending upon when the pension liability is to be paid
Explanation:
Unfunded pension plans can be regarded as plans that do not have
any assets set aside, in this case,
retirement benefits are usually paid from employer contributions directly. The set up of the retirement accounts can be by companies or governments.
Unfunded Liability = [( Value of Pension Fund Assets invested ) -[ ( present value of all future liabilities to pay pensions)]
After using this formula, if the gotten
result is less than "zero" then pension plan can be regarded as "underfunded"
It should be noted that An unfunded pension liability is reported on the balance sheet as a current liability or a long-term liability, depending upon when the pension liability is to be paid.
