2016年美國CPA練習題精選：Financial 34

 On December 31, Year 1, Paxton Co. had a note payable due on August 1, Year 2. On January 20, Year 2, Paxton signed a financing agreement to borrow the balance of the note payable from a lending institution to refinance the note. The agreement does not expire within one year, and no violation of any provision in the financing agreement exists. On February 1, Year 2, Paxton was informed by its financial advisor that the lender is not expected to be financially capable of honoring the agreement. Paxton's financial statements were issued on March 31, Year 2. How should Paxton classify the note on its balance sheet at December 31, Year 1?

a. As a current liability because the financing agreement was signed after the balance sheet date.

b. As a long-term liability because the agreement does not expire within one year.

c. As a current liability because the lender is not expected to be financially capable of honoring the agreement.

d. As a long-term liability because no violation of any provision in the financing agreement exists.

答案：C

Explanation

Choice "c" is correct. A short-term obligation may be excluded from current liabilities and included in non-current debt if the company has both the intent and the ability to refinance the debt on a long-term basis, as evidenced by an actual refinancing before the issuance of the financial statements, or by the existence of a noncancelable financing agreement from a lender with the financial resources to accomplish the refinancing. Because Paxton's lender does not have the financial resources to accomplish the refinancing, the note must be reported as a current liability on its December 31, Year 1 balance sheet.

Choices "a", "b", and "d" are incorrect for the reason described above.