Long-term lease obligations should not be separated into current and long-term portions for balance sheet purposes because both the current and long-term pieces relate to the same obligation.

Question

Quizplus · Accepted Answer

Long-term lease obligations should be separated into current and long-term portions for balance sheet purposes to accurately reflect the portion of the obligation that is due within the current year (current liability) and the portion that is due beyond the current year (long-term liability).

Long-Term Lease Obligations Should Not Be Separated into Current and Long-Term