If a company plans to retire long-term debt from a bond retirement fund, it should report the debt as current.

Question

Quizplus · Accepted Answer

If a company plans to retire long-term debt from a bond retirement fund, it should report the debt as non-current or long-term, since the intention is to retire it beyond the current operating cycle. Reporting the debt as current would misrepresent the company's financial position.

If a Company Plans to Retire Long-Term Debt from a Bond