Long-Term Obligations (I.e.,debts)that Is Callable for Early Payment

question 16

Multiple Choice

Long-term obligations (i.e.,debts) that is callable for early payment:

• A) Must continue to be classified as a long-term liability by the debtor, if a provision of the debt covenant has been violated.
• B) Must continue to be classified as a long-term liability in all situations.
• C) Must be reported as current liabilities by the debtor if callable on demand.
• D) Can be reported as current liabilities by the debtor only if callable because a provision of the debt covenant has been violated.

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