p$.$wWortdicom

$24-$ACCT$4001-01-$ADVANCED ACCOUNTING

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AND REPORTING

TESTLET $-21$

QiD $-1717499$

EXAM TIME

REMAINING

$10$

$6$

$7$

$8$

$9$

$10$

FLASHCAROS

NOI

ES

CALC

SPREADSHEET

$1$

$\frac{2}{3}$

$=$

$?$

OVE

HELP

$4$

$5$

$11$

$12$

$13$

$14$

$15$

$16$

$17$

$18$

$19$

$20$

$21$

$22$

$122$

If a long$-$term debt becomes callable due to the violation of a loan covenant, which of the following is true?

$$ A$.$ The debt may continue to be classified as long$-$term if the debt is not due for another year.

B$.$ The debt must be reclassified as current.

C$.$ Cash must be reserved to pay the debt.

D$.$ Retained earnings must be restricted in the amount of the debt.