Which of the Following Obligations Do NOT Arise from Past

question 9

Multiple Choice

Which of the following obligations do NOT arise from past services provided by an employee?

• A) Short-term compensated absences.
• B) Termination benefits.
• C) Other long-term employee benefits.
• D) Post-employment benefits.

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Definitions:

Payback Period

The number of years it takes a firm to recover its project investment. Payback does not capture a project’s entire cash flow stream and is thus not the preferred evaluation method. Note, however, that the payback does measure a project’s liquidity, and hence many firms use it as a risk measure.

Capital Budget Expenditures

Outlays of funds by a company for major investments or acquisitions intended to drive future growth.

Compliance

Adherence to laws, regulations, guidelines, and specifications relevant to its business processes.

Environmental Issues

Concerns related to the preservation of natural resources and the minimization of pollution and waste.