JoeyJo5654 JoeyJo5654

17-12-2019
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Which of the following is a current liability?
a.A long-term debt maturing currently, which is to be paid with cash in a sinking fund.
b.A long-term debt maturing currently, which is to be retired with proceeds from a new debt issue.
c.A long-term debt maturing currently, which is to be converted into common stock.
d.None of these answers are correct.

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sebastiansierraocm sebastiansierraocm

22-12-2019

Answer:

D) None of these answers are correct

Explanation:

None of the answers are correct because the definiton of current liability is a debt or obligation that has to paid off before the fiscal year ends. In other words, current liabilities are by definition short-term obligations, and all the options in the question refer to long-term obligations.

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