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a) it is to be converted into common stock before maturity.
b) it matures within the year and will be retired through the use of current assets.
c) management plans to refinance it within the year.
d) a bond retirement fund has been set up for use in its scheduled retirement during the next year.
(CMA Adapted)
it matures within the year and will be retired through the use of current assets
b) it matures within the year and will be retired through the use of current assets.
– Current liabilities are those liabilities that will be settled within one year or during the operating cycle if it is longer than one year. Long-term debt that matures within one year and will be retired through the use of current assets is a current liability. - HOCK
It cannot be 'c) management plans to refinance it within the year' as companies only refinance assests which are already current in order to show them as 'Non-current' in the balance sheet.
Option C is the right answer . When management plans to refinance it within the year .
