Which of these is not a difference between the contract-price method and the internal-yield method of valuing liabilities?
A) Ease/difficulty of calculation
B) Treatment of the time value of money
C) Reliance on historical cost information
D) Treatment of the interest obligation

Question

Quizplus · Accepted Answer

Both the contract-price method and the internal-yield method rely on historical cost information, so this is not a difference between them. The other options are differences: the contract-price method is easier to calculate but does not consider the time value of money, while the internal-yield method is more complicated but does account for the time value of money and interest obligation.

Which of These Is Not a Difference Between the Contract-Price