The Public Utilities Enterprise Fund Was Ordered by the Court

question 27

Multiple Choice

The Public Utilities Enterprise Fund was ordered by the court to pay environmental damages of $500,000. The fund is to pay $100,000 immediately and the remaining $400,000 in equal installments for next four years. In the year of the judgment, the Enterprise Fund would report

• A) $500,000 in expenses.
• B) $500,000 in liabilities.
• C) $100,000 in expenses.
• D) Nothing. All amounts would be recorded in General Long-term Liabilities accounts.

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Definitions:

Tip-Of-The-Tongue

A cognitive phenomenon where a person cannot fully retrieve a word but has a partial recall or feels that retrieval is imminent.

Memory Aids

Tools or techniques used to enhance or improve the ability to remember information.

Recall

The ability to retrieve and access information from one's memory that has been previously learned or experienced.

Spelling

The process or activity of writing or naming the letters of a word in the correct order.