The Current Portion of Notes Payable Would Normally Be Shown

question 73

True/False

The current portion of notes payable would normally be shown on the balance sheet in long-term liabilities.

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Definitions:

Diluted Earnings

Earnings per share calculated using the total number of shares that would be outstanding if all possible sources of conversion, such as convertible bonds and stock options, were exercised.

Basic Earnings

The net income available to common shareholders, divided by the weighted average number of common shares outstanding.

Weighted Average

A calculation that takes into account the proportional relevance of each component, rather than treating them equally.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.