On the Balance Sheet the Current Portion of Long-Term Debt

question 1

Multiple Choice

On the balance sheet the current portion of long-term debt should:

• A) be paid immediately.
• B) be reclassified as a current liability.
• C) be classified as a long-term liability.
• D) not be separated from the long-term portion of debt.

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Definitions:

Value Creation

The process of maximizing the difference between a customer’s willingness to pay and the cost of a product.

Value Capture

The process of maximizing the portion of that value the company keeps.

Low-Cost Strategy

A strategy that helps companies succeed through efficiencies and by reducing costs.

Growth Strategy

Approaches or plans implemented by a business or organization aimed at expanding its operations, increasing market share, or achieving higher revenues.