ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 301

b. A company may exclude a short-term obligation from
current liabilities if the firm can demonstrate an ability to
consummate a refinancing.

c. A company may exclude a short-term obligation from
current liabilities if it is paid off after the balance sheet date and
subsequently replaced by long-term debt before the balance
sheet is issued.

d. None of these.

45. The ability to consummate the refinancing of a shortterm obligation may be demon- strated by

a. actually refinancing the obligation by issuing a long-term
obligation after the date of the balance sheet but before it is
issued.