The ability to consummate the refinancing of a short-term obligation may be demon- strated by
A)actually refinancing the obligation by issuing a long-term obligation after the date of the balance sheet but before it is issued.
B)entering into a financing agreement that permits the enterprise to refinance the debt on a long-term basis.
C)actually refinancing the obligation by issuing equity securities after the date of the balance sheet but before it is issued.
D)all of these.

Question

Quizplus · Accepted Answer

All the options listed demonstrate the ability to refinance a short-term obligation, either through issuing long-term debt, entering a financing agreement, or issuing equity securities.

The Ability to Consummate the Refinancing of a Short-Term Obligation