BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which one of the following would not be valid grounds for a provision?
|
|
A company has a policy has a policy of cleaning up any environmental contamination caused by its operations, but is not legally obliged to do so.
|
|
|
A company is leasing an office building for which it has no further use. However, it is tied into the lease for another year.
|
|
|
A company is closing down a division. The Board has prepared detailed closure plans which have been communicated to customers and employees.
|
|
|
A company has acquired a machine which requires a major overhaul every three years. The cost of the first overhaul is reliably estimated at $120, 000.
|
Explanation:
There is 1 question to complete.