单选题
Are the following statements about trade debt and customer advances true or false? Statement 1: Trade debt is reported in the balance sheet at the present value of the future expected cash flows discounted at the firm' s weighted-average cost of capital. Statement 2: For analytical purposes, customer advances should be viewed as a prediction of future revenues rather than as an expected cash outflow. Statement 1 Statement 2 ①A. False True ②B. False False ③C. True True
【正确答案】
A
【答案解析】Trade (operating) debt is reported in the balance sheet at the expected undiscounted value. Customer advances are satisfied by providing goods or services. Thus, customer advances can be viewed as a prediction of future revenues rather than expected cash outflows.