The Current Portion of Long-Term Debt Should Be

question 59

Multiple Choice

The current portion of long-term debt should be

• A) removed from the long-term portion of debt with a journal entry.
• 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) paid immediately.

---

Definitions:

Placebo Effect

The phenomenon that occurs in an experiment when a participant’s response to a treatment is due to his or her expectations about the treatment rather than to the treatment itself.

Sugar Pill

A placebo, often used in medical trials to test the efficacy of new drugs by comparing their effects to those of an inert pill.

Drowsy

A feeling of being sleepily tired and lethargic, not fully awake, often as a prelude to falling asleep.

Random Assignment

The process of selecting participants for experimental and control groups by using a chance procedure to guarantee that each participant has an equal probability of being assigned to any of the groups; a control for selection bias.