Which of the Following Characteristics May Result in the Classification

question 7

Multiple Choice

Which of the following characteristics may result in the classification of a liability being changed from current to noncurrent?

• A) Violation of a subjective acceleration clause
• B) Violation of an objective acceleration clause
• C) A demand provision for payment
• D) Refinancing after the balance sheet date

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Definitions:

Intervening Cause

An event that occurs after a defendant's initial act of negligence and contributes to the harm, potentially relieving the defendant of some liability.

Unforeseeable Later Act

Events or actions that occur after a contract is executed, which could not have been anticipated by either party at the time of the contract.

Comparative Negligence

A legal doctrine used in tort law that reduces the amount of damages a plaintiff can recover based on the percentage of fault attributed to them.

Assumption of Risk

A legal defense in tort law where a person voluntarily exposes themselves to a known risk, potentially limiting their right to claim damages.