CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Which statement(s) is (are) true?

I. Short-term obligations may be classified as long-term if the company intends to refinance them on a long-term basis and can demonstrate the ability to do so.
II. Companies must disclose the fair market value of their debt in footnotes.
Correct Answer: Both are true.

User Contributed Comments 2

User Comment
Horv 1. Should be false. A company can claim intent however intent is not binding. This contradicts the previous question/answer.
swkimpo "and can DEMONSTRATE the ability to do so"
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