You have recorded a revolving line of credit on your company$$s financial statements due within the next ten $(10)$ months as a long$-$term liability. The board of directors of the company has asked you to explain why you have done so$.$ The company has been in default with its loan covenants, but prior to the issuance of the financial statements, the bank granted a waiver.

With reference to the above scenario, answer the following questions in $1-2$ paragraphs each.

What is a line of credit?

What promulgated accounting literature would your use to support your rationale described in your scenario?

What criteria should be met prior to reflecting this loan as a long$-$term liability?

Why would recording the loan as a long$-$term liability from a business standpoint of view make sense apart from compliance with promulgated standards?

What footnote disclosure would be necessary for the line of credit?