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.

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Definitions:

Proximity

A principle of perception that elements close to each other tend to be perceived as a group.

Similarity

The state or fact of being alike; often used to describe how alike two or more objects, ideas, or concepts are.

Closure

The psychological term for seeking a sense of resolution or completion.

Binocular Disparity

The difference in the images received by the two eyes as a result of their horizontal separation, which is used for depth perception.