Which of the Following Statements Is Correct

question 86

Multiple Choice

Which of the following statements is correct?

• A) A company may exclude a short-term obligation from current liabilities if the firm intends to refinance the obligation on a long-term basis.
• B) A company may exclude a short-term obligation from current liabilities if the firm can demonstrate an ability to consummate a refinancing.
• C) A company may exclude a short-term obligation from current liabilities if it is paid off after the balance sheet date and subsequently replaced by long-term debt before the balance sheet is issued.
• D) None of these answers are correct.

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