If a firm has noncurrent liabilities with a fixed interest rate, what will happen to the firms

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If a firm has noncurrent liabilities with a fixed interest rate, what will happen to the firm’s liabilities when market interest rates increase? Decrease? Although interest rates on a firm’s financial instruments may be fixed, actual current market interest rates can vary on a daily basis. Why don’t accountants value liabilities using current market rates?P-698

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Financial Accounting Reporting And Analysis

ISBN: 9780324149999

6th Edition

Authors: Earl K. Stice, James Stice, Michael Diamond, James D. Stice

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