Current liabilities are recorded at ________.
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A. B. C. D.Explanation
While all assets and liabilities, for analysis purposes, should be considered at their fair present value, the short horizon of current liabilities means that in practice, they are recorded at their face value. This means that the stated principal value of the liability is recorded as is, without factoring in interests expenses. This practice covers current liabilities arising from both operating activities (like advance payments and taxes payable) and financing activities (like accounts payable and short-term loans).