The Current Portion of Notes Payable Is the Principal Amount

question 140

True/False

The current portion of notes payable is the principal amount that will be paid within two years of the balance sheet date,and the remaining portion is long term.

---

Definitions:

Interim Period

A financial reporting period that is shorter than a full fiscal year, often quarterly.

Accounting Period

A specific duration of time for which financial statements are prepared, often annually or quarterly.

Accumulated Depreciation

The cumulative depreciation expense recorded for an asset from the time it was first utilized.

Artificial Time Periods

A concept in accounting referring to arbitrary time intervals chosen for the purpose of financial reporting, such as quarters or fiscal years.