MARKING GUIDE FOR ACCOUNTING 311 FALL 2001 MID-TERM #1
Present value is just a way of calculating the principle value of the debt, which is the same value as used in all liabilities (no future interest is included in any) Bank loans and accounts payable carry interest on top of the lent or owed amount, so they too are in effect reported at present value (no interest included) Present value is also used in pension accruals 4. 5 Mark for conclusion ... ................
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