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When Long-Term Debt Is Understated (Intentional or Unintentional)

Question 50

Multiple Choice

When long-term debt is understated (intentional or unintentional)


A) management has a better chance to earn their end of year bonuses
B) outsiders are mislead about the future cash flows to pay the liabilities
C) outsiders are mislead about the current cash flows
D) management is misleading outsiders about the future cash flows the liabilities can earn

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