Which of the Following Accounting Problems Does Not Involve a Present

question 55

Multiple Choice

Which of the following accounting problems does not involve a present value calculation?

• A) The determination of the market price of a bond.
• B) The determination of the declining-balance depreciation expense.
• C) The determination of the amount to report for long-term notes payable.
• D) The determination of the amount to report for lease liability.

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Definitions:

Relevant

Pertaining to something that is closely connected or appropriate to the matter at hand, especially in terms of information.

Accounting Information

This refers to the data generated from financial accounting practices, used for making business decisions.

Cost Constraint

The Cost Constraint principle in accounting refers to the idea that the value of the information provided by financial reports should outweigh the cost of providing it.

Going Concern

The assumption that an entity will continue its operations in the foreseeable future and not go bankrupt or be forced to stop operations.