Q9-57. Tomorrows Fashions has a debt that has been properly reported as a long-term liability up to
Question:
Q9-57. Tomorrow’s Fashions has a debt that has been properly reported as a long-term liability up to the present year (20X0). Some of this debt comes due in 20X0. If Tomorrow’s Fashions continues to report the current position as a long-term liability, the effect will be to
a. overstate the current ratio.
c. overstate net income.
b. understate total liabilities.
d. understate the debt ratio.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting International Financial Reporting Standards Global Edition
ISBN: 9781292211145
11th Edition
Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison
Question Posted: