FASB Financial Accounting Concepts on Using Estimated Future Cash Flow

question 69

Multiple Choice

FASB financial accounting concepts on using estimated future cash flow information in accounting measurements to value various assets and liabilities identified each of the following elements except

• A) an estimate of the future cash flows and the timing of those cash flows.
• B) an increase in the interest for any expected risk.
• C) estimates about variations in the amount or timing of those cash flows.
• D) that estimated cash flows should reflect a single most likely minimum or maximum possible amount, rather than a range of possible cash flows.

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Definitions:

Volcanoes

Openings in the Earth's crust through which molten rock, ash, and gases are ejected.

Plate Tectonics

A scientific theory explaining the movement of the Earth's lithosphere, which is divided into tectonic plates, over the more fluid asthenosphere.

Asthenosphere

The highly viscous, mechanically weak, and ductilely-deforming region of the upper mantle of the Earth, which lies just below the lithosphere.

Plate Boundary

The region where two tectonic plates meet, which can be characterized by seismic activity, mountain building, and volcanic eruptions.