Short-term debt that is expected to be refinanced on a long-term basis may be excluded from the current liability classification if the company has the intent to refinance or the ability to refinance.

Question

Quizplus · Accepted Answer

A company must have both the intent and the ability to refinance short-term debt on a long-term basis to exclude it from current liabilities.

Short-Term Debt That Is Expected to Be Refinanced on a Long-Term