Which of the Following Statements Is Incorrect

question 69

Multiple Choice

Which of the following statements is incorrect?

• A)The currently maturing portion of long-term debt must be classified as a current liability.
• B)The non-current portion of long-term debt will be correctly reported as a long-term liability.
• C)When a company plans to refinance the currently maturing debt on a long-term basis,and has the ability to do so,it may report the currently maturing debt as a long-term liability.
• D)The currently maturing portion of long-term debt is a current liability if it is due within one year from the date of the balance sheet,or within the operating cycle,whichever is longer.

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Definitions:

Corporate Takeover

The acquisition of one company by another, where the acquiring company gains control over the target company's operations and decision-making.

Nonprofit

Organizations that operate primarily for purposes other than generating profit, often focusing on social, educational, charitable, or religious objectives.

Chief Executive Officers

Top executives in charge of managing an organization or corporation, responsible for strategic planning, decision-making, and overall direction.

Fund-Raising

Fund-raising refers to the process of collecting financial contributions to support the activities, projects, or cause of a nonprofit organization or other entity.