If Any Portion of a Long-Term Debt Is to Be

question 109

True/False

If any portion of a long-term debt is to be paid in the next year, the entire debt should be classified as a current liability.

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Definitions:

Par Value Common Stock

The nominal or face value assigned to common shares in the charter of a corporation, which has little relation to the market value.

Paid-in Capital

The amount of money shareholders have invested in a company in exchange for equity, excluding any earnings retained by the company.

Market Value

The ongoing rate at which a commodity or service is offered for buying or selling in the market.

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price.