Which of the following situations does not use an accounting measure based on present values?
A) Pensions
B) Prepaid insurance
C) Leases
D) Sinking funds

Question

Quizplus · Accepted Answer

Prepaid insurance is not typically based on present values. It is recorded at the amount paid for coverage over a specific time period. Pensions, leases, and sinking funds all involve future payments or obligations that are discounted to their present value using an appropriate interest rate.

Which of the Following Situations Does Not Use an Accounting