Which of the Following Statements Is Incorrect

question 67

Multiple Choice

Which of the following statements is incorrect?

• A)The currently maturing portion of long-term debt must be classified as a current liability.
• B)The non-current portion of long-term debt will be correctly reported as a long-term liability.
• C)Even when a company plans to refinance the currently maturing debt on a long-term basis, and has the ability to do so, it must still report the currently maturing debt as a current liability.
• D)The currently maturing portion of long-term debt is a current liability if it is due within one year or from the date of the balance sheet, or within the operating cycle, whichever is longer.

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Definitions:

External

Pertaining to factors, forces, or environments outside of an individual or organization that influence outcomes or actions.

Lesbian, Gay, Bisexual, and Transgender

An inclusive term for communities and individuals who identify as lesbian, gay, bisexual, transgender, encompassing diverse sexual orientations and gender identities.

Illegal

Activities or actions that are forbidden by law and subject to criminal penalties or fines.

United States

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