Managers need to understand how long-term liabilities are
A)valued.
B)classified.
C)recognized.
D)All of these choices.

Question

Quizplus · Accepted Answer

Managers need to understand how long-term liabilities are valued, classified, and recognized in order to make informed decisions about financing activities, debt management, and financial reporting. Valuation methods may include present value calculations or amortization schedules, while classification involves determining whether a liability is current or non-current. Recognition involves determining when a liability should be recorded on the balance sheet and how interest and principal payments should be accounted for over time. All of these considerations are important for financial planning and analysis.

Managers Need to Understand How Long-Term Liabilities Are