Final answer:
Companies usually exercise discretion in what they list as debt obligations on the balance sheet and in the supporting schedule in the notes. The balance sheet does not show a company's debts over a period of time, but rather a snapshot of its financial position. Companies should report current maturities of long-term debt as a current liability.
Step-by-step explanation:
Statement A: Companies usually exercise discretion in what they list as debt obligations on the balance sheet and in the supporting schedule in the notes. This statement is true. Companies have some flexibility in determining which items to include as debt obligations on their balance sheet, and they can provide additional information in the notes to further explain these obligations.
Statement B: The balance sheet shows a company's debts over a period of time. This statement is false. The balance sheet is a snapshot of a company's financial position at a specific point in time. It does not show the company's debts over a period of time, but rather the company's assets, liabilities, and equity at that particular moment.
Statement C: Companies should report current maturities of long-term debt as a current liability. This statement is true. When a portion of a long-term debt is due within one year, it should be reported as a current liability on the balance sheet.
Statement D: Current liabilities are the first category under Liabilities on the balance sheet. This statement is false. Current liabilities are listed before long-term liabilities, but they are not necessarily the first category under liabilities. Other specific types of liabilities may be listed first, such as accounts payable or short-term notes payable.