The reported values of most current liabilities are equal to the
A) present value of future expenses.
B) amounts of cash that must be paid when those liabilities become due.
C) estimated cash flows that will result from the sale of the assets purchased when the liabilities were incurred.
D) discounted present values of the future payments that will be reviewed.
E) fair market value of the assets previously purchased at the settlement date for the liabilities.

Question

Quizplus · Accepted Answer

The reported values of most current liabilities are equal to the amounts of cash that must be paid when those liabilities become due. This is because current liabilities, such as accounts payable or short-term loans, represent obligations that the company is expected to settle within its normal operating cycle or within a year.

The Reported Values of Most Current Liabilities Are Equal to the