d. Consider the graphic in the lower middle. This displays the actual return on pension assets minus the expected returns (in $ millions). What does it mean for bars above versus below the $0 line in this graphic? When the bars are below the line, companies When the bars are above the line, companies e. Consider the pie chart that displays the cash payments for pension and healthcare benefits. In which sector are postretirement benefits the least compared to pension benefits paid? " The following graphics relate to pensions for S&P 500 firms from 2010 through 2018. Access the dashboard at myBusinessCourse to answer the requirements. Median PBO/Liabilities by Sector Median-Projected Benefit Obligation by Year 0.3- 0.2- 0.1 0.0 Industrials Materials Consumer Staples Telecomunication Services Total Liabilities Utilities Consumer Discretionary Healthcare Energy Information Technology Financials Real Estate Projected Benefit Obligation, (All Sectors) $2.0B $1.5B- $1.0B- $0.5B- $0.0B 2010 2011 2012 2013 2014 2015 2016 2017 2018 Median Funded Status/Asset by Sector 0.00 -0.02 -0.04 -0.06 Financials Energy Real Estate Healthcare Information Technology Ubilities Consumer Staples Consumer Discretionary Telecomunication Services Materials Industrials Median Actual Pension Return-Expected Pension Return $100M Projected Benefit Obligation $OM $(100)M Total Assets $(200)M 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Pension Related Cash Payments (All Sectors) Postretirement Benefits ་ Pension Benefits

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

D. 

The choices are

overestimate the pension assets return

overestimated the pension liability

underestimate the pension assets return

underestimated the pension liability

d. Consider the graphic in the lower middle. This displays the actual return on pension assets minus the expected returns (in $ millions).
What does it mean for bars above versus below the $0 line in this graphic?
When the bars are below the line, companies
When the bars are above the line, companies
e. Consider the pie chart that displays the cash payments for pension and healthcare benefits.
In which sector are postretirement benefits the least compared to pension benefits paid?
"
Transcribed Image Text:d. Consider the graphic in the lower middle. This displays the actual return on pension assets minus the expected returns (in $ millions). What does it mean for bars above versus below the $0 line in this graphic? When the bars are below the line, companies When the bars are above the line, companies e. Consider the pie chart that displays the cash payments for pension and healthcare benefits. In which sector are postretirement benefits the least compared to pension benefits paid? "
The following graphics relate to pensions for S&P 500 firms from 2010 through 2018. Access the dashboard at myBusinessCourse to answer the requirements.
Median PBO/Liabilities by Sector
Median-Projected Benefit Obligation by Year
0.3-
0.2-
0.1
0.0
Industrials
Materials
Consumer Staples
Telecomunication Services
Total Liabilities
Utilities
Consumer Discretionary
Healthcare
Energy
Information Technology
Financials
Real Estate
Projected Benefit Obligation,
(All Sectors)
$2.0B
$1.5B-
$1.0B-
$0.5B-
$0.0B
2010 2011 2012 2013 2014 2015 2016 2017 2018
Median Funded Status/Asset by Sector
0.00
-0.02
-0.04
-0.06
Financials
Energy
Real Estate
Healthcare
Information Technology
Ubilities
Consumer Staples
Consumer Discretionary
Telecomunication Services
Materials
Industrials
Median Actual Pension Return-Expected Pension Return
$100M
Projected Benefit
Obligation
$OM
$(100)M
Total Assets
$(200)M
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Pension Related Cash Payments
(All Sectors)
Postretirement
Benefits
་
Pension Benefits
Transcribed Image Text:The following graphics relate to pensions for S&P 500 firms from 2010 through 2018. Access the dashboard at myBusinessCourse to answer the requirements. Median PBO/Liabilities by Sector Median-Projected Benefit Obligation by Year 0.3- 0.2- 0.1 0.0 Industrials Materials Consumer Staples Telecomunication Services Total Liabilities Utilities Consumer Discretionary Healthcare Energy Information Technology Financials Real Estate Projected Benefit Obligation, (All Sectors) $2.0B $1.5B- $1.0B- $0.5B- $0.0B 2010 2011 2012 2013 2014 2015 2016 2017 2018 Median Funded Status/Asset by Sector 0.00 -0.02 -0.04 -0.06 Financials Energy Real Estate Healthcare Information Technology Ubilities Consumer Staples Consumer Discretionary Telecomunication Services Materials Industrials Median Actual Pension Return-Expected Pension Return $100M Projected Benefit Obligation $OM $(100)M Total Assets $(200)M 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Pension Related Cash Payments (All Sectors) Postretirement Benefits ་ Pension Benefits
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