20) Short term obligations can be reported as long-term liabilities i A) The firm has a long-term line of credit. B) The firn intends to and has the townance as long-term. C) The firm has the tyto ce on a long-term basis D) The firm has tentative plans to issue long-term bonds 21) 21) of the following which typically would not be classified as a currentl y A) Rentreven received in advance. B) Estimated liability from cash rebate program. C) A six-month bank loan to be paid with the proceeds from the sale of common D) A long-term te payable maturing within the coming year 22) 22) Kline Company refinanced current debt as long-term debilamuary 5, 2019 Kline's fiscal year ended on December 31, 2018, and its financial statements will be issued sometime in early March 2019. Under IFRS, how would Kline classify the debt on its December 31, 2018, balance sheet? A) in the meanine" between current and noncurrent liabilities B) Asa current liability C) Kline would not classify the debt as current or noecument, but rather would write a disclosure mote explaining the circumstances D) As a noncurrent liability 23) 23) Bench Company, a building materials supplier, las S1.000.000 of notes payable de April 12, 2019. At December 31, 2018, Brunch signed an agreement with First Rank to bomow up to $18,000,000 to refinance the notes on a long-term basis. The agreement specified that borrowings would not exceed 75% of the value of the collateral that Branch provided. At the date of we of the December 31, 2018, financial statements the value of Branch's collateral was $20,000,000. On its December 31, 2018, balance sheet, Branch should classify the notes as follows A) SI8,000,000 of leeg.com ilities B) $18,000,000 of curren t ies C) $4,500,000 short-term and $13.500,000 current liabilities D) $15,000,000 long-term and $3,000,000 current liabilities 2 4) 24) Gain contingencies usually recognized in a n y's income statement when A) The gain is reasonably possible and the amount can be reasonable estimated B) The gain is probable and the amount can be reasonably estimated C) Realized D) The amount can be reasonably estimated 25) 25) Gray Ca estimates it is probable that will receive a $10.000 gain contingency and pay a $4,000 contingency. After recording the appropriate journal entries to recognize contingent amounts, Gray Co's met assets will: A) Increase by $10,000 1) Decrease by $4.000 C) Increase by $6,000 D) Not change 26) 26) A company should serve a los contingency only if the likelihood that a liability has been incurred is: A) Probable and the amount of the loss can be reasonably estimated B) At least resonably possible and the amount of the loss is known C) More likely than and the amount of the loss is known D) Atla s onably possible and the amount of the loss can be reasonably estimated 27) 27) A los contingency should be cred in a company's financial statement only if the likelihood that a liability has been incurred is: A) Reasonably possible and the out of the loss can be reasonably estimated B) Probabie and the amount of the loss can be reasonably estimated C) Reasonably possible and the amount of the loss is known