The current portion of long-term debt should
A) be paid immediately.
B) be reclassified as a current liability.
C) be classified as a non-current liability.
D) not be separated from the long-term portion of debt.

Question

Quizplus · Accepted Answer

The current portion of long-term debt refers to the portion of a long-term debt that is expected to be repaid within the next 12 months. As such, it should be reclassified as a current liability on the balance sheet to reflect its short-term nature.

The Current Portion of Long-Term Debt Should