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3 years ago

Asset retirement obligations:

Business

1 answer:

koban [17]3 years ago

5 0

Answer:

The correct answer is D

Explanation:

ARO stands for Asset retirement obligations, it is a legal obligation which is linked or associated with the retirement of the tangible as well as long lived asset in which the method of the settlement could be conditional on the future event.

So, these are the liabilities linked with the long term asset restoration, evaluated at the fair value in the balance sheet and also increase the balance in the related account of asset.

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Imagine that David is preparing his will and is trying to decide how to divide his assets between his two grown children. His da

san4es73 [151]

Answer:

Fairness of Equal Outcomes: Split his wealth evenly between Terry and Tonya, Leave his money to charity instead.

Fairness of Equal Opportunity: Leave Terry his entire wealth to offset the gap between him and his sister.

Fairness of Process: Tell his kids he will leave the money to whoever does the most to take care of him in his old age.

Fairness of what is deserved or earned: Leave his money to the child whom he thinks deserves the most money.

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3 years ago

Create a list of rules to help you collaborate as a team, including expectations about meetings, communication, course work, con

Bumek [7]

Answer:

Ground rules helps a team set a guiding course in achieving their team objectives and goals.

Ground rules helps team members to know what is acceptable and what is frowned at.

Example of grounds rules includes:

Lateness to meeting is unacceptable

Communication must be formal and documented

Conflict resolution must be done and addressed by the leadership of the team

Explanation:

Ground rules helps a team set a guiding course in achieving their team objectives and goals.

Ground rules helps team members to know what is acceptable and what is frowned at.

Example of grounds rules includes:

Lateness to meeting is unacceptable

Communication must be formal and documented

Conflict resolution must be done and addressed by the leadership of the team

7 0

4 years ago

Value Added Inc. buys $1 million of sow’s ears at the beginning of January but doesn’t pay immediately. Instead, it agrees to pa

mamaluj [8]

Answer:

a. What is the firm’s net income in February?

net income = revenue - costs = $2,000,000 - $1,000,000 (only cost given) = $1,000,000

b. What is its net income in March?

$0, the company didn't sell anything during March

c. What is the firm’s net new investment in working capital in January?

net working capital = current assets - current liabilities = $1,000,000 (inventory) - $1,000,000 (accounts payable) = $0

d. What is its net new investment in working capital in April?

net working capital = current assets - current liabilities = $0

It changed accounts receivables for cash, they are both current assets.

e. What is the firm’s cash flow in January?

$0, it didn't pay anything during January

f. What is the firm’s cash flow in February?

$0, it didn't pay anything during February

g. What is the cash flow in March?

-$1,000,000 since it paid its accounts payable during March

h. What is the cash flow in April?

$2,000,000 since it collected its accounts receivables during April

6 0

3 years ago

Imprudential, Inc., has an unfunded pension liability of $568 million that must be paid in 15 years. To assess the value of the

Marianna [84]

Answer:

$233,677,865.61

Explanation:

The computation of the present value of this liability is given below:

As we know that

Future value = Present value × (1 + rate)^number of years

So,

Present value = Future value ÷ (1 + rate)^number of years

= $568,000,000 ÷ (1 + 6.1%)^15

= $568,000,000 ÷ 2.430696628

= $233,677,865.61

4 0

4 years ago

Derek has the opportunity to buy a money machine today. The money machine will pay Derek $44,309.00 exactly 16.00 years from tod

LenKa [72]

Answer:

$11,160.097

Explanation:

Data provided in the question:

Future value of machine = $44,309.00

Time, n = 16 years

Discount rate, r = 9.00% = 0.09

Now,

The amount Derek is will to pay will be the present value of the machine

Also,

we know

Future value = Present value × (1 + r)ⁿ

on substituting the respective values, we get

$44,309.00 = Present value × (1 + 0.09 )¹⁶

$44,309.00 = Present value × 3.97

Present value = $44,309.00 ÷ 3.97

Present value = $11,160.097

6 0

3 years ago