Which of the Following Is Correct Regarding the Treatment of Short-Term

question 16

Multiple Choice

Which of the following is correct regarding the treatment of short-term obligations expected to be refinanced?

• A) If an obligation has actually been refinanced or a firm refinancing agreement is in place by the date financial statements are issued, then reclassify the short-term obligation as long-term
• B) Classify the short-term obligation as long-term if the obligation has been refinanced by the balance sheet date.
• C) Classify the short-term obligation as long-term if the obligation has been refinanced by the date the financial statements are issued
• D) There is no provision for reclassifying short-term obligations expected to refinanced as long-term obligations under international accounting standards.

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Definitions:

Electoral College

A body of electors established by the United States Constitution, which is responsible for electing the president and vice president.

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