CMA Study Group

Question on Part 1 Exam, Chapter 1

  • 1.  Question on Part 1 Exam, Chapter 1

    Posted 21 days ago
    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,

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    Xiaomin Liang
    Accountant
    San Francisco CA
    United States
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  • 2.  RE: Question on Part 1 Exam, Chapter 1

    Posted 21 days ago
    Good morning how can we join the revision for the exam





  • 3.  RE: Question on Part 1 Exam, Chapter 1

    Posted 20 days ago
    Hi,

    This question is from the study material I purchased.

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    Xiaomin Liang
    Accountant
    San Francisco CA
    United States
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  • 4.  RE: Question on Part 1 Exam, Chapter 1

    Posted 20 days ago
    Hi,

    If the company intends to finance it with new debt.. and has demonstrated its ability to do so then it can classify it as long -term.

    The company can reclassify from short-term to long-term even after the B/s date (closing of financial statements date), but before the financial statements are issued.

    --
    Thanks & Regards
    Naser Parkar
    +97433929964





  • 5.  RE: Question on Part 1 Exam, Chapter 1

    Posted 20 days ago
    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
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  • 6.  RE: Question on Part 1 Exam, Chapter 1

    Posted 21 days ago
    Following because I had the same question.

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    Akeyla Christian
    Director/Manager
    St Thomas VI
    United States
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