The current portion of long-term debt is a balance sheet item for Flavorful Products Company.How would it most likely be classified on the balance sheet?
A)Current liability
B)Long-term liability
C)Current asset
D)Long-term asset

Question

Quizplus · Accepted Answer

The current portion of long-term debt is the portion of the principal amount of a long-term borrowing that must be paid within the next year. Since it is a debt that is due within the next year, it is classified as a current liability on the balance sheet.

The Current Portion of Long-Term Debt Is a Balance Sheet