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When a Company Has Current Debt That Can Be Reclassified

Question 10

Multiple Choice

When a company has current debt that can be reclassified as long-term, it should do so because ________.


A) the debt will no longer require the use of current assets or the creation of another current liability
B) short-term debt improves the financial position of the company
C) it improves the credit rating of the company
D) it is a more conservative approach to the balance sheet

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