Which of the Following Is Not a Condition Necessary to Exclude

question 105

Multiple Choice

Which of the following is not a condition necessary to exclude a short-term obligation from current liabilities?

• A) Intend to refinance the obligation on a long-term basis.
• B) Obligation must be due with one year.
• C) Demonstrate the ability to complete the refinancing.
• D) Subsequently refinance the obligation on a long-term basis.

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Definitions:

Taxpayer Efficiency

The degree to which tax revenues are collected and used in an effective, cost-efficient, and minimal waste manner by the government.

Lump-Sum Tax

A tax that is a fixed amount, no matter the change in circumstance of the taxed entity.

Marginal Income Tax Rate

The rate at which the last dollar of a taxpayer’s income is taxed, indicating the percentage of an additional dollar of income that will be paid in taxes.

Tax Schedule

A chart or table that displays tax rates applied to various income levels, dictating how much tax is owed based on income.