Response to the following questions:
1. What two criteria must be met before a company can classify short-term debt that is expected to be refinanced as a noncurrent liability?
2. How does a company demonstrate the ability to refinance currently maturing short-term debt?
3. GAAP requires that a company report certain obligations due on demand within one year (or operating cycle, if longer) as current liabilities. Do you agree with this statement? Explain.
If possible, please give examples to better understand your response.