The proper classification of liabilities as current assists decision-makers in determining the short-term and long-term cash needs of a company. Explain the impact on decision-makers and investors should classification errors take place. How could classifying a current liability as long-term be misleading? What possible effects might this have on a company's financial performance? Are there any ethical considerations that companies must consider?

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Proper classification of liabilities as current is crucial for decisionmakers and investors to accurately assess a companys shortterm and longterm cas... View the full answer