Given a choice,most companies would prefer to report a liability as long-term rather than current because:
A)It may cause the firm to appear less risky to investors and creditors.
B)It may reduce interest rates on borrowing.
C)It may cause the company to appear more stable,commanding a higher stock price for new stock listings.
D)All of these.

Question

Quizplus · Accepted Answer

All of these reasons are potential benefits of reporting a liability as long-term rather than current. By appearing less risky, a company may be able to secure better financing terms and potentially reduce their borrowing costs. Additionally, appearing stable and reliable can increase investor confidence and the perceived value of the company's stock.

Given a Choice,most Companies Would Prefer to Report a Liability