Final answer:
A short-term obligation expected to be refinanced may be excluded from current liabilities if (a) a company intends to refinance the obligation on a long-term basis, and (b) the company demonstrates an ability to consummate the refinancing.
Step-by-step explanation:
The statement is true. A short-term obligation expected to be refinanced may be excluded from current liabilities if the company intends to refinance the obligation on a long-term basis and demonstrates an ability to consummate the refinancing. This means that if a company plans to refinance a short-term obligation with a long-term loan and can show evidence that the refinancing will be successful, the obligation may not be classified as a current liability.