Determine the correct classification of the following liabilities: (1) Liability due in 6 months. (2) Liability refinanced with long term debt between the statement of financial position date and the date of issuance of financial statement. (3) Liability which will be refinanced on a long-term basis between the statement of financial position date and date of issuance of financial statement through an irrevocable agreement signed by debtor. (4) Liability paid between statement of financial position date and date of issuance of financial statement with cash; the cash is replenished with proceeds from long term debt also between the statement of financial position date and date of issuance of Only number 3 is noncurrent. All are current liabilities. Both numbers 3 and 4 are noncurrent. Only number 1 is current.
Determine the correct classification of the following liabilities: (1) Liability due in 6 months. (2) Liability refinanced with long term debt between the statement of financial position date and the date of issuance of financial statement. (3) Liability which will be refinanced on a long-term basis between the statement of financial position date and date of issuance of financial statement through an irrevocable agreement signed by debtor. (4) Liability paid between statement of financial position date and date of issuance of financial statement with cash; the cash is replenished with proceeds from long term debt also between the statement of financial position date and date of issuance of Only number 3 is noncurrent. All are current liabilities. Both numbers 3 and 4 are noncurrent. Only number 1 is current.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Determine the correct classification of the following liabilities:
(1) Liability due in 6 months.
(2) Liability refinanced with long term debt between thestatement of financial position date and the date of issuance of financial statement.
(3) Liability which will be refinanced on a long-term basis between the statement of financial position date and date of issuance of financial statement through an irrevocable agreement signed by debtor.
(4) Liability paid between statement of financial position date and date of issuance of financial statement with cash; the cash is replenished with proceeds from long term debt also between the statement of financial position date and date of issuance of
(1) Liability due in 6 months.
(2) Liability refinanced with long term debt between the
(3) Liability which will be refinanced on a long-term basis between the statement of financial position date and date of issuance of financial statement through an irrevocable agreement signed by debtor.
(4) Liability paid between statement of financial position date and date of issuance of financial statement with cash; the cash is replenished with proceeds from long term debt also between the statement of financial position date and date of issuance of
Only number 3 is noncurrent.
All are current liabilities.
Both numbers 3 and 4 are noncurrent.
Only number 1 is current.
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