Long-term debt is included in short-term liabilities if:
A) debt covenants are violated.
B) debt covenants are waived.
C) no portion of the debt is due the following year.
D) All of the above.

Question

Quizplus · Accepted Answer

Long-term debt is included in short-term liabilities if debt covenants are violated. This is because the violation may give the creditor the right to demand repayment sooner than originally agreed, effectively making the debt due within the short-term period.

Long-Term Debt Is Included in Short-Term Liabilities If