If a company intends to refinance a liability that is due within one year, that liability should not be classified as a current liability.

Question

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A current liability is a liability that is due within one year. If a company intends to refinance a liability that is due within one year, that liability should not be classified as a current liability because it is not expected to be paid within one year.

If a Company Intends to Refinance a Liability That Is