Final answer:
No, an employer does not have to report a liability on its balance sheet in a defined-benefit plan. The liability for these benefits is accounted for separately and disclosed in the financial statements' footnotes.
Step-by-step explanation:
No, an employer does not have to report a liability on its balance sheet in a defined-benefit plan. Defined-benefit plans are retirement plans in which the employer commits to providing a specified monthly benefit to retirees. These plans are often funded by the employer, who sets aside money to pay for future pension benefits. However, the liability for these benefits does not need to be reported on the balance sheet because it is accounted for separately in the financial statements. The employer will disclose the plan and its obligations in the footnotes to the financial statements.