(p.Appendix: A)On a partner's personal statement of financial condition,how should liabilities be valued? I.Present value
II)Lower of present value or cash settlement amount

Question

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Liabilities on a partner's personal statement of financial condition should be valued at the lower of present value or cash settlement amount. This is because liabilities are obligations that the partner owes and they should be reported at the amount that the partner would have to pay to settle the obligation at the current time. If the present value of the liability is lower than the cash settlement amount, then the present value should be used. This is because the present value takes into account the time value of money, meaning that the amount that would need to be paid in the future is worth less than the same amount paid today due to inflation and other factors.

(PAppendix: A)On a Partner's Personal Statement of Financial Condition,how Should