Current Portion of Long-Term Debt Refers to the Amount of Principle

question 31

True/False

Current portion of long-term debt refers to the amount of principle on a note payable that must be paid within a year or an operating cycle.

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Definitions:

Trial Balance

A bookkeeping worksheet listing the balance of all ledgers in two columns, debits and credits, used to ensure that the sum of debits equals the sum of credits.

Journal

A comprehensive listing documenting all monetary transactions of a company, first noted before being moved to the general ledger accounts.

Ledger Accounts

Individual financial records within the ledger that capture all transactions related to a specific asset, liability, equity, revenue, or expense.

Recording Process

The systematic method of capturing, documenting, and maintaining financial transactions and events in the accounting records of an organization.