Which of the following characteristics may result in the classification of a liability being changed from current to noncurrent?
A) Violation of a subjective acceleration clause
B) Violation of an objective acceleration clause
C) A demand provision for payment
D) Refinancing after the balance sheet date

Question

Quizplus · Accepted Answer

Refinancing after the balance sheet date may result in the classification of a liability being changed from current to noncurrent as it indicates that the entity has obtained the right to defer settlement of the liability for at least twelve months from the balance sheet date. Violation of an acceleration clause (whether subjective or objective) or a demand provision for payment would result in the liability being reclassified as current.

Which of the Following Characteristics May Result in the Classification