(Pension Terminology) The following items appear on Hollingsworth Company’s financial statements.

1. Under the caption Assets:

Pension asset/liability.

2. Under the caption Liabilities:

Pension asset/liability.

3. Under the caption Stockholders’ Equity:
Prior service cost as a component of Accumulated Other Comprehensive Income.
4. On the income statement:
Pension expense.
Instructions .
Explain the significance of each of the items above on corporate financial statements. (Note: All items set forth above are not necessarily to be found on the statements of a single company.)