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?

Question

Quizplus · Accepted Answer

Reporting long-term debt at the present value of the cash flows associated with that debt is in accordance with the accounting principle that requires interest to be considered. This approach does not violate any accounting principles; instead, it accurately reflects the time value of money, which is a fundamental concept in finance and accounting.

Which One of the Following Is Violated When a Firm