The Current Portion of Long-Term Debt Would Appear on the Balance

question 90

Multiple Choice

The current portion of long-term debt would appear on the balance sheet as

• A)current liability.
• B)long-term liability.
• C)current asset.
• D)long-term debt.

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Definitions:

Inductive Reasoning

An approach to theory development that begins with observations of practice and leads to inferences about principles, assumptions and objectives.

Credit Balance

An accounting term describing a situation where the credits in an account exceed the debits, often indicating a liability or revenue.

Liability Account

An accounting record that represents an entity's obligations to pay debts owed to other entities in the future.

Horizon Problems

Challenges faced by management in making decisions that benefit short-term performance at the expense of long-term gains, often influenced by the tenure of managers or external pressures.