Conceptually, all liabilities should be reported on the balance sheet at
A)the present value of the future outlays they require
B)their maturity value
C)face amount
D)their current cash equivalent amount

Question

Quizplus · Accepted Answer

Liabilities should be reported on the balance sheet at the present value of the future outlays they require. This approach reflects the time value of money, indicating the current worth of the future cash flows associated with the liabilities.

Conceptually, All Liabilities Should Be Reported on the Balance Sheet