A company may classify a long term obligation due to

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: isted companies. A company may classify a long-term obligation due to be settled within twelve months as a long-term liability instead of a current liability on its year end balance sheet if the company? intends to refinance this obligation on a long-term basis. can show that it has the ability to obtain refinancing on a long-term basis. pays off these amounts after the balance sheet date and subsequently obtains a long-term loan to replace this obligation before the date of authorization of the financial statements. None of the above 4 ACCT201 Q9. Bright Roofing Ltd manufactures roofing materials. Previously, Bright Roofing had used asbestos, a health hazard, in the manufacture of ceiling materials. As a result, some the company’s employees contracted asbestos related disease. In recent court cases, some other companies who also used asbestos in the manufacture of ceiling materials were found liable to pay compensation of varying amounts to persons who had contracted asbestos disease. The compensations paid by these companies vary with the age, educational qualifications and severity of the illness of the pe...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online