Pollution Remediation Obligations Should Be Recognized If Which of the Following

question 52

Multiple Choice

Pollution remediation obligations should be recognized if which of the following obligating events has occurred?

• A) A violation of a pollution prevention permit has occurred.
• B) The government is named or will be named as the responsible or potentially responsible party to a remediation.
• C) The government is compelled to take remediation action due to imminent endangerment to the public health.
• D) All of the above items are obligating events that would require recognition of a pollution remediation obligation.

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Definitions:

Payment of Account

The process of settling an amount owed to a creditor or vendor, often referred to as making a payment on an account.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable within a period.

Days' Sales in Receivables

A financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.

Industry Average Turnover

A measure comparing a company's sales or revenues relative to the average of its industry, indicating how efficiently a company is utilizing its assets.