Determine the correct classification of the following liabilities: (1) Liability with a due date which can be accelerated to within one year of the statement of financial position date; a reasonable probability exists that the due date will be accelerated.
Determine the correct classification of the following liabilities: (1) Liability with a due date which can be accelerated to within one year of the statement of financial position date; a reasonable probability exists that the due date will be accelerated.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Determine the correct classification of the following liabilities:
(1) Liability with a due date which can be accelerated to within one year of thestatement of financial position date; a reasonable probability exists that the due date will be accelerated.
(2) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is remote.
(3) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is reasonable but not likely.
(4) Current portion of long-term debt.
(1) Liability with a due date which can be accelerated to within one year of the
(2) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is remote.
(3) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is reasonable but not likely.
(4) Current portion of long-term debt.
Group of answer choices
Only number 1 is noncurrent.
Only numbers 1 and 3 are noncurrent.
All are current liabilities.
All are long term liabilities.
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