GAAP Requires That a Company Record a Loss and Liability

question 32

Multiple Choice

GAAP requires that a company record a loss and liability for termination benefits when

• A) the amount can be reasonably estimated.
• B) the employee accepts the offer.
• C) the corporation extends the offer.
• D) both a and b.

---

Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity thereof that producers are willing to supply.

Alternative Good

A product or service that consumers may choose as a substitute for another good or service.

Quantity Supplied

The amount offered for sale per period at a particular price, as reflected by a point on a given supply curve.

Resource Prices

Prices of inputs used in the production of goods and services, including raw materials, labor, and capital.