Under US GAAP If a Company Cannot Determine Whether the Event

question 119

True/False

Under U.S. GAAP if a company cannot determine whether the event has occurred, the requirement is to recognize a liability if it is probable that the event has occurred.

---

Definitions:

Lava Flows

Lava flows are streams of molten rock that pour out of an erupting volcano, cooling and solidifying to form new rock formations.

Felsic Lava

Lava that is rich in silica and light in color, often associated with explosive volcanic eruptions.

Scoria Cones

Volcanic features formed from the accumulation of small, porous volcanic rocks (scoria) around a vent, resulting in a cone-shaped hill.

Bulldozing

A process involving the forceful pushing, scouring, or removal of earth, materials, or obstacles using heavy machinery or natural forces, such as glaciers.