When a Company Has Current Debt That Can Be Reclassified

question 10

Multiple Choice

When a company has current debt that can be reclassified as long-term, it should do so because ________.

• A) the debt will no longer require the use of current assets or the creation of another current liability
• B) short-term debt improves the financial position of the company
• C) it improves the credit rating of the company
• D) it is a more conservative approach to the balance sheet

---

Definitions:

Effectiveness

Effectiveness is the degree to which an activity, process, or intervention achieves its intended goal or result, often used to evaluate performance and outcomes.

Social Culture

The patterns, behaviors, beliefs, and all other products of human work and thought as shared by a society.

Positive Response

A reaction or answer that is affirmative or in agreement to a query, suggestion, or scenario.

Cultural Differences

The various beliefs, values, behaviors, and social structures unique to each society or community.