The ability to refinance on a long term basis can be demonstrated if the company has already refinanced the obligations after the date of the balance sheet but before it is issued.

Question

Quizplus · Accepted Answer

If a company has already refinanced its obligations after the date of the balance sheet but before it is issued, it demonstrates the ability to refinance on a long-term basis. This is because the company was able to secure new financing for a longer term, indicating that it has access to credit markets and can meet its debt obligations in the future.

The Ability to Refinance on a Long Term Basis Can