The Current Portion of Long-Term Debt Represents the Principal and Interest

question 145

True/False

The current portion of long-term debt represents the principal and interest payments on long-term installment obligations that are due within one year.

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Definitions:

Interest

is the cost of borrowing money or the payment received for lending money, typically expressed as an annual percentage of the principal.

Debt

An amount of money borrowed by one party from another, often used to make large purchases that cannot be funded by other means.

Present Value

The current price of a future monetary sum or a succession of cash flows, taking into account a certain rate of interest.

Cash Flows

The comprehensive flow of funds in and out of a corporation, significantly shaping its ability to pay off short-term debts.