Final answer:
The statement about financial statement disclosures for long-term debt being detailed is true. These disclosures include terms and conditions, total amount owed, interest rates, maturity dates, and any associated risks, particularly for bonds as a common form of long-term debt.
Step-by-step explanation:
The appropriate statements about financial statement disclosures for long-term debt include detailing the terms and conditions, the total amount, interest rates, maturity dates, and any associated risks. This statement is True. When dealing with long-term debt like bonds, it is crucial to provide comprehensive information to all interested parties, which includes investors and regulatory bodies. Detailed disclosures ensure transparency and provide necessary information for decision-making processes.
Bonds, as a form of long-term debt, have multiple components that are critical for understanding their value and associated obligations. The face value represents the principal amount to be paid back at maturity, while the coupon rate denotes the interest payable, often on a semi-annual basis. The maturity date dictates when the face value and final interest payment will be made to the bondholder. These elements, along with current market interest rates, enable the calculation of a bond's present value, which informs investors about the maximum price they might be willing to pay for a bond.