Assume the Same Facts as in Question 142

question 86

Multiple Choice

Assume the same facts as in question 142. What is the frequent flyer program liability that ALA should report in its December 31, 2009 balance sheet?

• A)$31 million
• B)$40 million
• C)$45 million
• D)$49 million This is the beginning liability of $28 million minus awards redeemed of $19 million + new awards accrued of $40 million = $49 million.

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Definitions:

Descriptive Statements

Statements that provide detailed information or explanation about a specific topic, often used in documentation or reporting.

LIFO

Last In, First Out, an inventory valuation method that assumes goods purchased last are the first ones sold, affecting the cost of goods sold and inventory valuation.

FIFO

First-In, First-Out; an inventory valuation method where goods first purchased or produced are sold or used first.

IFRS

International Financial Reporting Standards, which are a set of global accounting standards.