Question
Can anyone take a look at my accounting answers and let me know if I am correct or not? Identify three situations in which accounting
Can anyone take a look at my accounting answers and let me know if I am correct or not?
Identify three situations in which accounting measures are based on present values.
Notes-valuing non-current receivables and payable that carry no stated interest rate or a lower than market interest rate.
Leases-Valuing assets and obligations to be capitalized under long-term leases and measuring the amount of the lease payments and annual leasehold amortization.
Long-term assets-evaluating alternative long-term investments by discounting future cash flows. determining the value of assets acquired under deferred payment contracts. measuring impairments of assets.
Do these present value applications involve single sums or annuities, or both single sums and annuities? Explain.
Notes - It involves - single sums.
Leases - It involves present value of annuities.
Long-term assets - It involves Present value of annuities
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