Brawn Co.has a $20,000,two-year note payable to Gassaway City Bank that matures June 30,2014.Brawn's management intends to refinance the note for an additional three years and is negotiating a financing agreement with Gassaway City.In order to exclude this note from current liabilities on its December 31,2013,balance sheet,Brawn Co.must

Question

Quizplus · Accepted Answer

To exclude the note from current liabilities on its December 31, 2013, balance sheet, Brawn Co. must demonstrate an ability to refinance the obligation before the 2013 financial statements are issued. This does not necessarily require completing the refinancing before the balance sheet date or the note's maturity date, but rather showing a clear intent and ability to do so.

Brawn CoHas a $20,000,two-Year Note Payable to Gassaway City Bank That