Some assets, such as a space shuttle, are not readily salable at the end of their useful lives, and retiring them may impose substantial costs. Which of the following is true?
a. Firms recognize a liability, referred to as an asset retirement obligation at the present value of the estimated dismantling costs.
b. Firms recognize a liability, referred to as an asset retirement obligation at the estimated fair value of the dismantling costs.
c. Firms recognize a liability, referred to as an asset retirement obligation at the estimated future value of the dismantling costs.
d. Firms recognize a liability, referred to as an asset retirement obligation at the estimated liquidation value of the dismantling costs.
e. Firms do not recognize a liability because such costs are uncertain in nature and the firms can always file for bankruptcy to avoid the dismantling costs.
B
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On an organizational chart, a dotted line typically indicates a(n)
A. outside company. B. line position. C. staff position. D. temporary employee. E. nonmanagerial employee.
In the Asian crisis, which began in 1997,
A. investors began to pull their financial investments out of Asia with urgency. B. large banks from Asia began purchasing large American banks, threatening the health of the U.S. financial system. C. mutual funds in Asia began to fail in large numbers. D. savings-and-loan institutions in Asia began to fail in large numbers.
Delaying payments to suppliers and others during the last several days of an accounting period conserves cash and thereby increases cash flow from operations for that period
Indicate whether the statement is true or false
Which of the following is NOT a type of asset?
A) current B) fixed C) intangible D) owners' equity E) goodwill