Which one of the following is violated when a firm reports its long-term debt at the present value of the cash flows associated with that debt? Matching No violations occurred. This accounting is correct. Revenue recognition Gross value of the debt

Which one of the following is violated when a firm reports its long-term debt at the present value of the cash flows associated with that debt? Matching No violations occurred. This accounting is correct. Revenue recognition Gross value of the debt

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

QUESTION 41

Which one of the following is violated when a firm reports its long-term debt at the present value of the cash flows associated with that debt?

Matching

No violations occurred. This accounting is correct.

Revenue recognition

Gross value of the debt

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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Short-term debt expected to be refinanced may be classified as long-term if off-statement of financial position financing is to be obtained after the statement of financial position date but before the issue date of the financial statements. TRUE or FALSE
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question 53
QUESTION 8 The appropriate collateral for a secured short-term loan is ... fixed assets. work-in-progress inventory. raw materials, inventory and receivables. ordinary stock in privately held corporations.
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