Which of the following must be disclosed relative to long-term debt maturities and sinking fund requirements?
A) The present value of future payments for sinking fund requirements and long-term debt maturities during each of the next five years.
B) The present value of scheduled interest payments on long-term debt during each of the next five years.
C) The amount of scheduled interest payments on long-term debt during each of the next five years.
D) The amount of future payments for sinking fund requirements and long-term debt maturities during each of the next five years.

Question

Quizplus · Accepted Answer

The correct answer is D because companies are required to disclose the amount of future payments for sinking fund requirements and long-term debt maturities during each of the next five years, not the present value of those payments or the present value of scheduled interest payments. This information helps investors and creditors assess the company's future cash outflows and financial health.

Which of the Following Must Be Disclosed Relative to Long-Term