Business, 18.12.2019 21:31 kaliyaht01

On december 31, year 2, fox co. had a note payable due on august 1, year 3.on january 20, year 3, fox signed a financing agreement to borrow the balance of the note payable from a lending institution to refinance the note. the agreement does not expire within one year, and no violation of any provision in the financing agreement exists. on february 1, year 3, fox was informed by its financial advisor that the lender is not expected to be financially capable of honoring the agreement. fox's financial statements wereissued on march 31, year 3. how should fox classify the note on its balance sheet at december 31, year 2? a. as a current liability because the financing agreement was signed after the balance sheet date. b. as a long-term liability because no violation of any provision in the financingagreement exists. c. as a current liability because the lender is not expected to be financially capable of honoring the agreement. d. as a long-term liability because the agreement does not expire within one year.

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On december 31, year 2, fox co. had a note payable due on august 1, year 3.on january 20, year 3, fo...