Which of the Following Is Correct Regarding the Treatment of Short-Term

question 20

Multiple Choice

Which of the following is correct regarding the treatment of short-term obligations expected to be refinanced?

• A) If an obligation has actually been refinanced or a firm refinancing agreement is in place by the date financial statements are issued,then reclassify the short-term obligation as long-term
• B) Classify the short-term obligation as long-term if the obligation has been refinanced by the date the financial statements are issued
• C) Classify the short-term obligation as long-term if the obligation has been refinanced by the balance sheet date.
• D) There is no provision for reclassifying short-term obligations expected to refinanced as long-term obligations under international accounting standards.

---

Definitions:

Roles

The functions or parts played by individuals in a particular social context or system.

Terror Management Theory

A psychological concept suggesting that humans have distress and anxiety over awareness of mortality, driving them to seek symbolic or literal immortality through their cultures and values.

Moral Foundations Theory

A social psychological theory that suggests there are several universal moral domains upon which human ethical systems are constructed, influencing our judgments and behaviors.

Cultural Evolution Model

A theory describing how cultures evolve over time through mechanisms such as selection, adaptation, and innovation.