If a long-term liability is paid in installments, the maker will report the current portion of the note payable as a current liability.

Question

Quizplus · Accepted Answer

This is true. The current portion of a long-term liability, which is the amount due within one year, is reported as a current liability on the balance sheet. The remaining portion of the long-term liability is reported as a non-current liability.

If a Long-Term Liability Is Paid in Installments, the Maker