A Company Can Exclude a Short-Term Obligation from Current Liabilities

question 58

True/False

A company can exclude a short-term obligation from current liabilities if it intends to refinance the obligation and has an unconditional right to defer settlement of the obligation for at least 12 months following the due date.

---

Definitions:

Meters

The base unit of length in the International System of Units (SI), equivalent to 100 centimeters.

Milliliters

A unit of volume in the metric system, equal to one-thousandth of a liter.

Liters

A metric unit of volume equal to one cubic decimeter, commonly used to measure fluids.

Significant Figures

The digits in a numerical value that contribute to its measurement accuracy, including all certain digits and the first uncertain digit.