For US GAAP Reporters, Short-Term Debt Can Be Reclassified as Long-Term

question 174

Multiple Choice

For U.S. GAAP reporters, short-term debt can be reclassified as long-term when the company intends to refinance on a long-term basis and the company can ________.

• A) pay-off the note by the day the financial statements are completed
• B) set up a long-term financing agreement after the financial statements are issued
• C) extend the debt term after the release of the financial statements
• D) demonstrate the ability to consummate the refinancing

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