On December 31, 2010, Total Assets and Liabilities Are Measured

question 11

Short Answer

On December 31, 2010, total assets and liabilities are measured at $16,000 and $12,000, respectively. The total market value of the company's common stock is $7,000. At what amount would shareholders' equity be measured on the December 31, 2010 balance sheet?

Grasp the concepts of liability under environmental statutes such as CERCLA.

Interpret the responsibilities of new sources regarding pollution control equipment.

Identify the common law theories applicable to environmental liabilities.

Assess the enforcement mechanisms and roles of different government levels in environmental legislation.

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Definitions:

International Convergence

A goal or process of harmonizing accounting standards and practices across different countries to improve comparability and transparency of financial reporting globally.

Accounting Standards

Formal guidelines and rules for accounting practices that determine how financial statements are prepared and presented.

FASB

Financial Accounting Standards Board, an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States.

Bright-line Rules

Clearly defined rules or standards that leave little ambiguity and are easy to implement or enforce.