Authoritative guidance requires firms that account for notes and bonds using the _____ market interest rate to report the carrying values, or book values, on the balance sheet and to disclose the _____ of these notes and bonds in notes to the financial statements.
A)average; historical market interest rates
B)historical; future value
C)current; future value
D)historical, fair value
E)current; historical market interest rates

Question

Quizplus · Accepted Answer

Authoritative guidance requires firms to use the historical market interest rate for accounting purposes and to report the fair value of notes and bonds in the notes to the financial statements.

Authoritative Guidance Requires Firms That Account for Notes and Bonds