Which One of the Following Statements Is False

Which one of the following statements is false?

A) Short-term obligations may be classified as long-term if the company intends to refinance them on a long-term basis and can demonstrate the ability to do so.
B) Violation of a long-term debt covenant automatically means the company must reclassify the debt as current.
C) Current liabilities are recorded at their maturity value, and not their present value.
D) If a bond is issued at a discount the effective interest rate is greater than the coupon rate.

Correct Answer:

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