The current portion of long-term debt should be
A) paid immediately.
B) classified as a current liability on the statement of financial position.
C) classified as a long-term liability on the statement of financial position.
D) removed from the long-term portion of debt with a journal entry.

Question

Quizplus · Accepted Answer

The current portion of long-term debt refers to the amount of debt that is due to be paid within the next year. It is classified as a current liability on the statement of financial position because it represents an obligation that needs to be settled in the short term, typically within one year.

The Current Portion of Long-Term Debt Should Be