Which of the Following Statements About Accounting for Pollution Remediation

question 37

Multiple Choice

Which of the following statements about accounting for pollution remediation costs is NOT true?

• A) They may be accounted for in either an enterprise fund or a governmental fund.
• B) In the government-wide statements, estimates of costs to be incurred in the future should be reported as expenses and offsetting liabilities.
• C) Because of the potential effects on public health, liabilities for all estimated remediation costs should be considered and reported as current liabilities.
• D) Remediation costs to be accounted for include postremediation monitoring costs as well as actual cleanup costs.

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Definitions:

Monetary Policy

The process by which a central bank, currency board, or monetary authority controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and trust in the currency.

Fiscal Policy

Government policies related to taxation and spending that aim to influence the economy, manage inflation, and stimulate economic growth.

Restrictive Fiscal Policy

Fiscal measures implemented by a government to reduce its spending and/or increase taxes with the aim of slowing down an overheating economy.

Economic Plunge

A sudden and sharp decline in economic activity, often characterized by a decrease in GDP, investment, and employment.