A municipal solid waste landfill (MSWLF)accounted for by an enterprise fund should recognize an expense and liability for the year in the amount of

Question

Quizplus · Accepted Answer

The best choice is D because it recognizes an expense and liability based on the current year's usage of the landfill, which is a more accurate reflection of the actual costs incurred. The estimated total current costs for closure and postclosure are reevaluated at the end of each fiscal year, ensuring that the liability reflects the current estimates of the costs. The expense recognized is proportional to the amount of landfill used during the year, which is a more reasonable allocation of costs compared to choices A and C, which allocate costs based on total capacity and estimated operational life span.

A Municipal Solid Waste Landfill (MSWLF)accounted for by an Enterprise