If a client is in violation of a debt covenant, the debt is shown as short-term.

Name: If a client is in violation of a debt covenant, the debt is shown as short-term.
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Quizplus · Accepted Answer

If a client is in violation of a debt covenant, it means they are not meeting the requirements set out in their loan agreement. This can trigger a default, which typically makes the debt due immediately. Therefore, it would be classified as short-term debt.

If a Client Is in Violation of a Debt Covenant