All of the following statements about current liabilities are true except?
A)Current liabilities are valued at their present value.
B)Current liabilities are important for assessing short-term liquidity.
C)Current liabilities will be satisfied in a year or one operating cycle.
D)The difference between the present value and the face value of a current liability is small.

Question

Quizplus · Accepted Answer

Current liabilities are not valued at their present value but are recorded at their face value. The present value is only used in certain situations where there is a discount or premium involved, such as with bonds payable.

All of the Following Statements About Current Liabilities Are True