The current portion of long-term notes payable is ________.
A) the amount of principal that will be paid within five years
B) typically included with the long-term liabilities on the balance sheet
C) recorded as an adjusting entry
D) reclassified as current for reporting purposes on the balance sheet

Question

Quizplus · Accepted Answer

The current portion of long-term notes payable refers to the amount of principal that is due within the next year. This portion is reclassified from long-term to current liabilities on the balance sheet to accurately reflect obligations that are due in the short term.

The Current Portion of Long-Term Notes Payable Is ________