Which of the Following Situations Would Not Require That Long-Term

question 16

Multiple Choice

Which of the following situations would not require that long-term liabilities be reported as current liabilities on a classified balance sheet?

• A) The long-term debt is callable by the creditor.
• B) The creditor has the right to demand payment due to a contractual violation.
• C) The long-term debt matures within the upcoming year.
• D) The company intended to refinance the debt and did so prior to issuance of the financial statements.

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