Which of the following is not a reason why a company might prefer to report a liability as long-term rather than current?
A)It may cause the firm to appear less risky to investors and creditors.
B)It may increase interest rates on borrowing.
C)It may cause the company to appear more stable commanding a higher stock price for new stock listings.

Question

Quizplus · Accepted Answer

Reporting a liability as long-term rather than current would not have any impact on interest rates. The other options are valid reasons why a company might prefer to report a liability as long-term.

Which of the Following Is Not a Reason Why a Company