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 non-current portion of debt.

Question

Quizplus · Accepted Answer

The current portion of long-term debt is the amount that is due within one year of the balance sheet date. It should be reclassified as a current liability to accurately reflect the company's obligations that are due in the short term.

The Current Portion of Long-Term Debt Should