Which of the following is not a reason why a company might prefer to report a liability as long-term rather than current?

Question

Quizplus · Accepted Answer

Reporting a liability as long-term rather than current may cause the interest rates on borrowing to increase, as the company is perceived to have a longer-term debt obligation. The other options suggest potential benefits of reporting a liability as long-term, such as appearing less risky to investors and creditors, appearing more stable for stock listings, and potentially reducing interest rates on borrowing.

Which of the Following Is Not a Reason Why a Company