The purpose of reporting Current Maturities of Long-Term debt is to:
A) report any portion of a long-term borrowing that is to be paid in the upcoming accounting period as a current liability.
B) reclassify a portion of debt from the noncurrent section of the balance sheet to the current section of the balance sheet.
C) properly classify liabilities.
D) all of these.

Question

Quizplus · Accepted Answer

The purpose of reporting Current Maturities of Long-Term debt includes all the options: to report the portion of long-term debt due within the next year as a current liability, to reclassify it from noncurrent to current on the balance sheet, and to ensure proper classification of liabilities.

The Purpose of Reporting Current Maturities of Long-Term Debt Is