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The Liability for This Loan as of 31 December 2014

Question 200

Multiple Choice

The liability for this loan as of 31 December 2014:


A) Is equal to its maturity value.
B) Is equal to the book value of the two trucks that were acquired in exchange.
C) Is classified as a noncurrent liability, since it was used to acquire noncurrent assets.
D) Is classified as a noncurrent liability if Central Food has the intent and ability to refinance by taking out a new loan not due for several years.

Correct Answer:

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