Debt that is callable by the creditor in the upcoming year, but is not expected to be called, is reported as

Business

1 answer:

balu736 [363]4 years ago

3 0

Answer: current liability

Explanation: Callable debts are simply called bonds (an investment instrument whereby an individual or investor loans a certain amount to an organization in other to finance a project or business that yields profit) which the creditor or issuer call of or terminate a bond before it reaches maturity usually due to decline or decrease in the interest rate on investment, which could have fallen below or seem illogical given the Interst rate in the bond. As such, bonds which are Callable are reported as current liabilities even when they are not expected to be called as current liabilities should include all of an organization's debt or liabilities which should be cleared within 12 months(current fiscal year).

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