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 1Statement 2 ①A. False True ②B. False False ③C. True True
A．
| A. ① |
B．
| B. ② |
C．
| C. ③ |
参考答案：A
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.