Current liabilities normally are recorded at their:
A) Present value.
B) Cost.
C) Maturity amount.
D) Expected value.

Question

Quizplus · Accepted Answer

Current liabilities are typically recorded at their maturity amount, which is the amount that the company will have to pay to settle the obligations when they come due. This is because current liabilities are short-term in nature and are expected to be settled within a year or less, so the present value is not typically significant. Cost and expected value are not relevant for measuring current liabilities.

Current Liabilities Normally Are Recorded at Their