Which of the following statements is false? A. Short-term debt is generally classified as a current liability.
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Question:
Which of the following statements is false?
A. Short-term debt is generally classified as a current liability.
B. Management may never exclude short-term debt from current liabilities.
C. If a company violates a long-term debt agreement and the liability becomes callable by the creditor within one year, the company reports the entire amount of the long-term obligation as a current liability.
D. When a company's board of directions declares a dividend, the company recognizes a current liability if it expects to distribute the dividends with the following year.
Related Book For
Accounting For Governmental And Nonprofit Entities
ISBN: 9781260118858
19th Edition
Authors: Jacqueline Reck, Suzanne Lowensohn, Daniel Neely
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