Creative Products Company
The following question(s) are based on items that might appear on the balance sheet of a company like the Creative Products Company. Identify how each item would be most likely classified on its balance sheet.
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Refer to the information provided for Creative Products Company. Current portion of long-term debt will appear as a:
A) current liability.
B) long-term liability.
C) current asset.
D) long-term asset.

Question

Creative Products Company 
The following question(s) are based on items that might appear on the balance sheet of a company like the Creative Products Company. Identify how each item would be most likely classified on its balance sheet.
-
Refer to the information provided for Creative Products Company. Current portion of long-term debt will appear as a:
A) current liability.
B) long-term liability.
C) current asset.
D) long-term asset.

Quizplus · Accepted Answer

The current portion of long-term debt is classified as a current liability because it represents the amount of long-term debt that is due within the next year.