Question: Why does the accounting profession no longer support the exclusion of short-term obligations expected to be refinanced from current liabilities, only if a company had
Why does the accounting profession no longer support the exclusion of short-term obligations expected to be refinanced from current liabilities, only if a company had the intent and ability to refinance?
Multiple choice
Because companies would always increase the long-term debt no matter what the reason.
So the auditors would not be able to understand how to classify the short-term debt.
To ensure comparability between companies over time.
Because it would require double entry accounting.
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