Day 20 - 80% Flashcards
1
Q
When an asset retirement obligation exists, how should it be recorded?
A
Asset retirement costs INCREASE the carrying value of the long lived asset and the ARO is recorded as a liability on the BS
Both the asset and the liability will be equal to the FAIR VALUE of the ARO (which is the discounted future cash flows)
MCQ-04238
2
Q
A deferred tax asset represents:
A
Future tax savings
MCQ-00841
3
Q
LCM
MCQ-00131
A
