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You Have Just Started Your New Position at Entity Investments

question 20

Short Answer

You have just started your new position at Entity Investments as the financial statement analyst. Your boss is concerned about the value of liabilities reported on the financial statements. The non-current liabilities are recorded using the discounted present values and the currently liabilities are recorded using the face value.
Instructions
Explain to your boss why current liabilities and non- current liabilities are valued differently.


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