Which of the following is TRUE regarding the requirement for a company to exclude Short- Term Obligations from current liabilities? O It must intend to refinance the short-term obligation so that it will not require the use of working capital. O It can demonstrate the abilitly to refinance by actually refinancing the debt after the balance sheet date but before the balance sheet is issued. O It can demonstrate the ability to refinance by entering into a financing agreement. O All of the above are true.
Which of the following is TRUE regarding the requirement for a company to exclude Short- Term Obligations from current liabilities? O It must intend to refinance the short-term obligation so that it will not require the use of working capital. O It can demonstrate the abilitly to refinance by actually refinancing the debt after the balance sheet date but before the balance sheet is issued. O It can demonstrate the ability to refinance by entering into a financing agreement. O All of the above are true.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Which of the following is TRUE regarding the requirement for a company to exclude Short-
Term Obligations from current liabilities?
O It must intend to refinance the short-term obligation so that it will not require the use of working
capital.
O It can demonstrate the abilitly to refinance by actually refinancing the debt after the balance sheet
date but before the balance sheet is issued.
O It can demonstrate the ability to refinance by entering into a financing agreement.
O All of the above are true.
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