One recognised approach to reducing the level of debt that has been adopted in the past was to:
A) attempt to report the debt as equity, often in the form of preference shares.
B) create reserves and draw on them later as a source of funding.
C) treat as many liabilities as possible as provisions.
D) record liabilities as an increase in cash and a decrease in revenues.

Question

Quizplus · Accepted Answer

In the past, companies have attempted to reclassify debt as equity, such as preference shares, to improve their balance sheet appearance and reduce the reported level of debt.

One Recognised Approach to Reducing the Level of Debt That