A potential fraud risk associated with debt obligations is the intentional misclassification of short-term debt as long-term debt.

Question

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Intentional misclassification of short-term debt as long-term debt can be a potential fraud risk because it can distort the company's financial health and make it appear more financially stable than it actually is. It can also mislead investors and creditors about the company's ability to meet its debt obligations in the short term.

A Potential Fraud Risk Associated with Debt Obligations Is the Intentional