Explain the significance of each of the following items found on corporate financial statements. Note that not all items would necessarily be found on the statements of a single company.

1. Pension Asset/Liability found in the asset section of the balance sheet.

2. Pension Asset/Liability found in the liability section of the balance sheet.

3. Prior Service Cost found as part of Accumulated Other Comprehensive Income in the equity section of the balance sheet.

4. Pension Expense found on the income statement.