Which one of the following would not be valid grounds for a provision? A. A company has always cleaned up any environmental contamination caused by its operations, but is not legally obliged to do so. B. A company is leasing an office building for which it has no further use. However, it is tied into the lease for another year. C. A company is closing down a division. The Board has prepared detailed closure plans which have been communicated to customers and employees. D. A company has acquired a machine which requires a major overhaul every three years. The cost of the first overhaul is reliably estimated at GHS120,000
Which one of the following would not be valid grounds for a provision? A. A company has always cleaned up any environmental contamination caused by its operations, but is not legally obliged to do so. B. A company is leasing an office building for which it has no further use. However, it is tied into the lease for another year. C. A company is closing down a division. The Board has prepared detailed closure plans which have been communicated to customers and employees. D. A company has acquired a machine which requires a major overhaul every three years. The cost of the first overhaul is reliably estimated at GHS120,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which one of the following would not be valid grounds for a provision?
A. A company has always cleaned up any environmental contamination caused by its operations, but is not legally obliged to do so.
B. A company is leasing an office building for which it has no further use. However, it is tied into the lease for another year.
C. A company is closing down a division. The Board has prepared detailed closure plans which have been communicated to customers and employees.
D. A company has acquired a machine which requires a major overhaul every three years. The cost of the first overhaul is reliably estimated at GHS120,000
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