A debt due to be paid in two months can be classified on the balance sheet as long-term if:

Multiple Choice

• it will be paid using Cash.

• the company intends to repay the debt with proceeds from a long-term bond issuance.

• the company has the intent and ability to refinance the debt on a long-term basis.

• the company has an unused, long-term line of credit that it can access to repay the debt.