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The Town of Conway Opened a Solid Waste Landfill in 2001

question 39

Multiple Choice

The Town of Conway opened a solid waste landfill in 2001 that is now filled to capacity. The city initially anticipated closure costs of $2 million. These costs were not expected to be incurred until the landfill is closed. What is the final journal entry to record these costs assuming the estimated $2 million closure costs were properly recorded and the landfill is accounted for in an enterprise fund? $\begin{array}{|l|l|r|r|}\hline \text { A) } & \text { Expense-Landfill Closure } & 2,000,000 & \\\hline & \text { Landfill Closure Liability } & & 2,000,000 \\\hline \text { B) } & \text { Landfill Closure Liability } & 2,000,000 & \\\hline & \text { Expense-Landfill Closure } & & 2,000,000 \\\hline \text { C) } & \text { Expense-Landfill Closure } & 2,000,000 & \\\hline & \text { Cash } & & 2,000,000 \\\hline \text { D) } & \text { Landfill Closure Liability } & 2,000,000 & \\\hline & \text { Cash } & & 2,000,000 \\\hline \text { E) } & \text { Expenditure- Landfill Closure } & 2,000,000 & \\\hline & \text { Cash } & & 2,000,000 \\\hline\end{array}$

Understand the concept of social responsibility and its application in business.

Comprehend the impact of intellectual property laws on ethical business conduct.

Recognize the importance of being informed as a consumer and understand the principle of caveat emptor.

Understand the basics of Arbitrage Pricing Theory (APT) and its assumptions.

Definitions:

Central Bank

An institution that manages a country's currency, money supply, and interest rates, oversee the commercial banking system, and provides financial services to the government.

Unemployment Rate

The percentage of the labor force that is jobless and seeking employment, used as an indicator of the economy's health.

Contractionary Monetary Policy

Monetary policy measures undertaken by a central bank to reduce inflation and slow down economic growth by decreasing the money supply or increasing interest rates.

Minimum Wage

The lowest remuneration that employers can legally pay their workers, a rate which is set by government legislation.