Which of the following statements about accounting for pollution remediation costs is NOT true?
A) They may be accounted for in either an enterprise fund or a governmental fund.
B) In the government-wide statements, estimates of costs to be incurred in the future should be reported as expenses and offsetting liabilities.
C) Because of the potential effects on public health, liabilities for all estimated remediation costs should be considered and reported as current liabilities.
D) Remediation costs to be accounted for include postremediation monitoring costs as well as actual cleanup costs.

Question

Quizplus · Accepted Answer

Liabilities for estimated remediation costs are not automatically considered current liabilities. The classification between current and long-term liabilities depends on the timing of the expected cash outflows to cover these costs, not solely on their potential effects on public health.

Which of the Following Statements About Accounting for Pollution Remediation