Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Trade payables must always be measured at amortized cost using the effective interest method. True or false?

Financial Accounting Financial Management
user-image
Question added by Deleted user
Date Posted: 2013/08/28
Upvote (3) Views (6) Followers (2) Answers (1) Report Question
Write an Answer
Register now or log in to answer.
Prince Ninan
by Prince Ninan , Audit Executive , Lewis & Pecker

Partly true.
In rare cases, vendor may give unusually long credit period and the price of the product will be higher if than the cash sale price.
The difference is written off over the credit period.
But it is a rare business transaction.

Write Your Answer
More Questions Like This