CMA Study Group

Hello,

Anyone can help me out with this question? 

A corporation uses a calendar year for financial and tax reporting purposes and has $100 million of mortgage bonds due on January 15, Year 2. By January 10, Year 2, the corporation intends to refinance this debt with new long-term mortgage bonds and has entered into a financing agreement that clearly demonstrates its ability to consummate the refinancing. This debt is to be? 

Classified as a long-term liability on the statement of financial position at December 31, Year 1. 

My question is: On the balance sheet issue date, December 31, Year 1, the company doesn't plan to refinance. Why the debt is considered as long term, not short term?

Thanks,

------------------------------
Xiaomin Liang
Accountant
San Francisco CA
United States
------------------------------

Original Message:
Sent: 7/9/2021 11:51:00 PM
From: Xiaomin Liang
Subject: Question on Part 1 Exam, Chapter 1

Hello,

Anyone can help me out with this question? 

A corporation uses a calendar year for financial and tax reporting purposes and has $100 million of mortgage bonds due on January 15, Year 2. By January 10, Year 2, the corporation intends to refinance this debt with new long-term mortgage bonds and has entered into a financing agreement that clearly demonstrates its ability to consummate the refinancing. This debt is to be? 

Classified as a long-term liability on the statement of financial position at December 31, Year 1. 

My question is: On the balance sheet issue date, December 31, Year 1, the company doesn't plan to refinance. Why the debt is considered as long term, not short term?

Thanks,

------------------------------
Xiaomin Liang
Accountant
San Francisco CA
United States
------------------------------

Hi,

This question is from the study material I purchased.

------------------------------
Xiaomin Liang
Accountant
San Francisco CA
United States
------------------------------

Original Message:
Sent: 07-10-2021 01:26 AM
From: Farah Azzam
Subject: Question on Part 1 Exam, Chapter 1

Good morning how can we join the revision for the exam

Original Message:
Sent: 7/9/2021 11:51:00 PM
From: Xiaomin Liang
Subject: Question on Part 1 Exam, Chapter 1

Hello,

Anyone can help me out with this question?

A corporation uses a calendar year for financial and tax reporting purposes and has $100 million of mortgage bonds due on January 15, Year 2. By January 10, Year 2, the corporation intends to refinance this debt with new long-term mortgage bonds and has entered into a financing agreement that clearly demonstrates its ability to consummate the refinancing. This debt is to be?

Classified as a long-term liability on the statement of financial position at December 31, Year 1.

My question is: On the balance sheet issue date, December 31, Year 1, the company doesn't plan to refinance. Why the debt is considered as long term, not short term?

Thanks,

------------------------------
Xiaomin Liang
Accountant
San Francisco CA
United States
------------------------------

Original Message:
Sent: 7/10/2021 1:27:00 AM
From: Farah Azzam
Subject: RE: Question on Part 1 Exam, Chapter 1

Good morning how can we join the revision for the exam

Original Message:
Sent: 7/9/2021 11:51:00 PM
From: Xiaomin Liang
Subject: Question on Part 1 Exam, Chapter 1

Hello,

Anyone can help me out with this question? 

A corporation uses a calendar year for financial and tax reporting purposes and has $100 million of mortgage bonds due on January 15, Year 2. By January 10, Year 2, the corporation intends to refinance this debt with new long-term mortgage bonds and has entered into a financing agreement that clearly demonstrates its ability to consummate the refinancing. This debt is to be? 

Classified as a long-term liability on the statement of financial position at December 31, Year 1. 

My question is: On the balance sheet issue date, December 31, Year 1, the company doesn't plan to refinance. Why the debt is considered as long term, not short term?

Thanks,

------------------------------
Xiaomin Liang
Accountant
San Francisco CA
United States
------------------------------

Hello, 
I just wanted to confirm that what will be the exam code? When I registered for the exam there was written CMA I'd so is that the I'd that I got at the time of payment or the authorization number?
Thanks

------------------------------
HARNEET KAMBOJ
Accountant
JALANDHAR
India
------------------------------

Original Message:
Sent: 07-10-2021 01:26 AM
From: Farah Azzam
Subject: Question on Part 1 Exam, Chapter 1

Good morning how can we join the revision for the exam

Original Message:
Sent: 7/9/2021 11:51:00 PM
From: Xiaomin Liang
Subject: Question on Part 1 Exam, Chapter 1

Hello,

Anyone can help me out with this question?

A corporation uses a calendar year for financial and tax reporting purposes and has $100 million of mortgage bonds due on January 15, Year 2. By January 10, Year 2, the corporation intends to refinance this debt with new long-term mortgage bonds and has entered into a financing agreement that clearly demonstrates its ability to consummate the refinancing. This debt is to be?

Classified as a long-term liability on the statement of financial position at December 31, Year 1.

My question is: On the balance sheet issue date, December 31, Year 1, the company doesn't plan to refinance. Why the debt is considered as long term, not short term?

Thanks,

------------------------------
Xiaomin Liang
Accountant
San Francisco CA
United States
------------------------------

Following because I had the same question.

------------------------------
Akeyla Christian
Director/Manager
St Thomas VI
United States
------------------------------

Original Message:
Sent: 07-09-2021 11:51 PM
From: Xiaomin Liang
Subject: Question on Part 1 Exam, Chapter 1

Hello,

Anyone can help me out with this question?

A corporation uses a calendar year for financial and tax reporting purposes and has $100 million of mortgage bonds due on January 15, Year 2. By January 10, Year 2, the corporation intends to refinance this debt with new long-term mortgage bonds and has entered into a financing agreement that clearly demonstrates its ability to consummate the refinancing. This debt is to be?

Classified as a long-term liability on the statement of financial position at December 31, Year 1.

My question is: On the balance sheet issue date, December 31, Year 1, the company doesn't plan to refinance. Why the debt is considered as long term, not short term?

Thanks,

------------------------------
Xiaomin Liang
Accountant
San Francisco CA
United States
------------------------------