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mario62 [17]
3 years ago
9

Short-term obligations can be reported as long-term liabilities if: a. The firm has the ability to refinance on a long-term basi

s. b. The firm intends to and has the ability to refinance as long-term. c. The firm has tentative plans to issue long-term bonds. d. The firm has a long-term line of credit.
Business
2 answers:
____ [38]3 years ago
7 0

Answer: b. The firm intends to and has the ability to refinance as long-term.

Explanation: While short term obligations are a firm's financial obligations that are due within a year or a normal operating cycle, long term obligations are due beyond a year and are listed on the firm's balance sheet.

Short term obligations (current liabilities) can be reported as long term liabilities if the firm intends to and has the ability to refinance (the revision of interest rate, payment schedule, and terms of a previous credit agreement as long-term).

This is possible because after the refinancing, the short term obligations are no longer due within a year.

Valentin [98]3 years ago
4 0

Answer:

The answer is B.

Explanation:

Let's define the terms:

Short-term obligation is the obligation that will be repaid within a year. For example, a six-month loan or 12-month loan.

Long-term obligation is the obligation that will be repaid more than a year. For example, a bond.

Refinancing a loan is the process of repaying an existing loan with a new loan.

Refinancing a short term obligation on a long term means to replace short-term loan with a long term loan for an uninterrupted period extending beyond one year.

Under U.S. GAAP, there are certain conditions to be met before recognizing short-term obligations as long-term obligations:

if an entity has the intent and ability to refinance the obligation on a long-term basis, as demonstrated by either (1) the issuance of a long-term obligation or equity securities after the balance sheet date or (2) a financing agreement that clearly permits the entity to refinance on a long-term basis.

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Indi and Indrani are sisters who own a software development company. Demand has been increasing for their products and services
Alexandra [31]

Answer:

open an new office because the expected marginal benefit ($12.5 million over 5 years) is greater than the estimated marginal cost ($7 million)

Explanation:

The computation is shown below;

Given that

Total marginal benefit = 12.5 million

And, the Total marginal cost = 7 million

Based on the above information

We can see that the new office should be opened as the marginal benefit would be more than the marginal cost

Therefore the first option is correct

And, the rest of the options would be incorrect

4 0
3 years ago
Which process supports the design and development of products from the initial product idea stage through the discontinuation of
Blababa [14]

The lifecycle data management (design) method aids in the conception and creation of products from the time of their inception till their discontinuation.

<h3>Data lifecycle management: What is it?</h3>

Data lifecycle management (DLM) is a method for managing data from the point of data entry to the point of data deletion. Data is divided into phases depending on various criteria, and as it completes various tasks or satisfies particular needs, it advances through these stages. A successful DLM process gives a business's data structure and organization, enabling important process goals including data security and availability.

These objectives are essential to corporate success and become more significant over time. Businesses can plan for the dire repercussions in the event of data breaches, data loss, or system failure thanks to DLM policies and procedures.

To know more about 'Data lifecycle management', visit: brainly.com/question/14096313

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4 0
1 year ago
In 2019, selected automobiles had an average cost of $12,000. the average cost of those same automobiles is now $13,200. what wa
maksim [4K]

The rate of increase for these automobiles between the two time periods is  10%

<h3>What is automobiles?</h3>

Automobile is the wheeled vehicle usually having four wheels and generally used for the transportation purposes. For example :- car, buses, trucks, bike etc.

In the above case, the average cost of the automobile is $12000 in 2009 but now it has increased to $ 13200. For the calculation of the increased rate of the auto mobile following formula is used as follows:-

Increased rate = (current value -Initial value )/current value * 100

                         =( $13,200 -  $12,000)/  $12,000 *100

                          =$1200/ 12000 *100

                          = 10%

                           

Therefore, the rate of the increase for these automobile between 2 periods is 10%.

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5 0
2 years ago
A new mother asks the nurse, "I was told that my infant received my antibodies during pregnancy. Does that mean that my infant i
rosijanka [135]

Answer:

The immune system of an infant is immature, and the infant is at risk for infection."

Explanation:

When a new baby is born, the antibodies of the mother is transferred to the baby when she is pregnant. And these antibodies will remain in the body for the entire life and will protect her from any infections.

           When the mother asked the nurse about the protection of her infant in case of any infection because the mother was told that her infant will received  her antibodies during pregnancy, the nurse answered the mother by explaining they the immune system of the new born is not mature at this stage so the infant is likely to be affected by germs and infections and will fall ill. Now the infant is at risk for infection.

6 0
4 years ago
In 2018, Uriah received the following interest payments:
Gnom [1K]

Answer:

C) $2,200

Explanation:

Interest generated by municipal bonds is not taxed by the federal or state governments. While interest generated by US Securities is not taxed by the state governments, but it is taxed by the federal government. The interest generated by her certificate of deposit is taxed as well as the interest earned by the overpayment of prior federal taxes.

$300 + $400 + $1,500 = $2,200

6 0
3 years ago
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