Which of the Following Statements Is True

question 97

Multiple Choice

Which of the following statements is true?

• A)If ability to refinance a currently maturing obligation is present, the obligation should be classified as noncurrent debt.
• B)If no reasonable estimate can be made of the minimum amount expected to be available for future refinancing, the entire outstanding short-term obligation must be disclosed as a noncurrent obligation.
• C)The FASB has concluded that obligations that are due on demand should be classified as a current liability, even though liquidation of the liability is not expected within the next year or operating cycle, whichever is longer.
• D)If a refinancing is soon to be accomplished by issuing common stock, a currently maturing short-term obligation should be included in stockholders' equity on the current balance sheet.

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Definitions:

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