Current liabilities are normally recorded at the amount expected to be paid rather than at their present value. This practice can be supported by GAAP according to the concept of:
A) Matching.
B) Consistency.
C) Materiality.
D) Conservatism.

Question

Quizplus · Accepted Answer

The concept of materiality supports the practice of recording current liabilities at the amount expected to be paid rather than at their present value. This is because the difference between the present value and the amount expected to be paid is often not material for short-term liabilities, making the detailed calculations unnecessary for decision-making purposes.

Current Liabilities Are Normally Recorded at the Amount Expected to Be