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Explain in What Situations,and Why,some Provisions Should Be Measured at Present

question 48

Essay

Explain in what situations,and why,some provisions should be measured at present values.


Definitions:

Free Cash Flow

The revenue a firm accrues post-deducting expenses associated with operational support and upkeep of its capital goods.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in accounting to find the average cost of goods sold.

Free Cash Flow

The amount of cash that a company generates after accounting for cash outflows to support operations and maintain capital assets.

Stock Options

Financial instruments that give the holder the right, but not the obligation, to buy or sell shares of a stock at a specified price before a specified date.

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