Given a choice,most companies would prefer to report a liability as current rather than long-term,because doing so may cause the firm to appear less risky.

Question

Quizplus · Accepted Answer

Companies generally prefer to report liabilities as long-term rather than current, as long-term liabilities are not due within the next year, making the company appear more financially stable and less risky in the short term.

Given a Choice,most Companies Would Prefer to Report a Liability