Balance sheet liabilities should be recorded at their
A) original outstanding balance.
B) year-end outstanding balance.
C) average outstanding balance.
D) current outstanding balance.
E) none of these.

Question

Quizplus · Accepted Answer

Balance sheet liabilities should be recorded at their current outstanding balance as this represents the most accurate and up-to-date figure for the amount owed. Recording the original outstanding balance, year-end outstanding balance, or average outstanding balance would not reflect any changes in the liability over time.

Balance Sheet Liabilities Should Be Recorded at Their