Noncurrent monetary liabilities are initially recorded at their
A)future value.
B)historical value.
C)present value when incurred.
D)undiscounted amount due.

Question

Quizplus · Accepted Answer

Noncurrent monetary liabilities are initially recorded at their present value when incurred. This is because the present value represents the current worth of the future cash outflows required to settle the liability, taking into account the time value of money.

Noncurrent Monetary Liabilities Are Initially Recorded at Their