Which of the following must be disclosed relative to long-term debt maturities and sinking fund requirements?
A) The present value of future payments for sinking fund requirements and long-term debt maturities during each of the next five years.
B) The present value of scheduled interest payments on long-term debt during each of the next five years.
C) The amount of scheduled interest payments on long-term debt during each of the next five years.
D) The amount of future payments for sinking fund requirements and long-term debt maturities during each of the next five years.

Question

Quizplus · Accepted Answer

Disclosure of the amount of future payments for sinking fund requirements and long-term debt maturities during the next five years is required by the Financial Accounting Standards Board (FASB) to provide investors and creditors with useful information regarding a company's debt obligations. The present value of future payments for sinking fund requirements and long-term debt maturities during each of the next five years is not required to be disclosed, nor is the present value of scheduled interest payments on long-term debt during each of the next five years, as these do not provide as much relevant information as the actual amount of the payments. The amount of scheduled interest payments on long-term debt during each of the next five years is not as informative as the amount of future payments for sinking fund requirements and long-term debt maturities, which includes both principal and interest payments.

Which of the Following Must Be Disclosed Relative to Long-Term