Acompany has outstanding accounts payable of $30,000 and a short-term construction loan in the amount of $100,000 at year end. the loan was refinanced through issuance of long-term bonds after year end but before issuance of financial statements. how should these liabilities be recorded in the balance sheet?

Explanation:

Accounts payable is included in the current liability according to international financial reporting standards (IFRS). Although the construction loan was actually payable at year-end, if the company has both the willingness and ability to refinance with long-term debt, the $100,000 construction loan may be included at year-end in long-term liabilities. Therefore, current liabilities of $30,000 and long-term liabilities of $100,000 should be reported on the balance sheet.

The extracts of the statement of financial positions are given below:

Non-current liabilities:

Refinanced loan $100,000

Current liabilities:

Accounts payable $ 30,000

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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