Which of the following statements is correct?
A)A company may exclude a short-term obligation from current liabilities if the firm intends to refinance the obligation on a long-term basis.
B)A company may exclude a short-term obligation from current liabilities if the firm can demonstrate an ability to consummate a refinancing.
C)A company may exclude a short-term obligation from current liabilities if it is paid off after the balance sheet date and subsequently replaced by long-term debt before the balance sheet is issued.
D)None of these.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct?
A)A company may exclude a short-term obligation from current liabilities if the firm intends to refinance the obligation on a long-term basis.
B)A company may exclude a short-term obligation from current liabilities if the firm can demonstrate an ability to consummate a refinancing.
C)A company may exclude a short-term obligation from current liabilities if it is paid off after the balance sheet date and subsequently replaced by long-term debt before the balance sheet is issued.
D)None of these.

Which of the Following Statements Is Correct