Which of the following statements is correct?Select one:None of these.A company may exclude a short-term obligation from current liabilities if it is paid off after the statement of financial position date and subsequently replaced by long-term debt before the statement of financial position is issued.A company may exclude a short-term obligation from current liabilities if it intends to refinance the obligation on a long-term basis.A company may exclude a short-term obligation from current liabilities if it has an unconditional right to defer settlement of the liability for at least 12 months.

Short term obligation means any financial obligation payable within a period of 12 months.

Answered: Which of the following statements is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following statements is correct?

Select one:

None of these.
A company may exclude a short-term obligation from current liabilities if it is paid off after the statement of financial position date and subsequently replaced by long-term debt before the statement of financial position is issued.
A company may exclude a short-term obligation from current liabilities if it intends to refinance the obligation on a long-term basis.
A company may exclude a short-term obligation from current liabilities if it has an unconditional right to defer settlement of the liability for at least 12 months.

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