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On February 1, 2014, Burnaby Company Renewed Its Banking Arrangements

Question 69

Multiple Choice

On February 1, 2014, Burnaby Company renewed its banking arrangements with its principle bank.None of the terms of their loans changed.How should this event be reflected in Burnaby's December 31, 2013, financial statements?


A) Disclosed as a purchase commitment.
B) Disclosed as a subsequent event.
C) Accrued as a current liability.
D) It is not reflected in Burnaby's financial statement.

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