Of the following items, the only one which should not be classified as a current liability is
A) current maturities of long-term debt.
B) sales taxes payable.
C) short-term obligations expected to be refinanced.
D) unearned revenues.

Question

Quizplus · Accepted Answer

Short-term obligations expected to be refinanced do not need to be classified as current liabilities if the entity intends to refinance the obligation on a long-term basis and demonstrates the ability to do so. This contrasts with the other options, which are typically classified as current liabilities because they are due within one year or within the operating cycle, whichever is longer, and do not depend on a refinancing plan.

Of the Following Items, the Only One Which Should Not