The Current Portion of a Long-Term Note Payable Is Classified

question 55

Multiple Choice

The current portion of a long-term note payable is classified on the balance sheet as a:

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

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Definitions:

Supplementary Record

A document or collection of notes that provides additional information beyond the core financial statements, offering deeper insight into a company's financial position.

Balance Sheet Methods

Techniques used in preparing and presenting the balance sheet, a financial statement showing a company's assets, liabilities, and equity at a specific point in time.

Receivables Financing

A form of financing where a company uses its accounts receivable as collateral to secure funding from a financial institution.

Maturity Date

The specific date on which a financial instrument (like a bond or loan) becomes due for payment of principal and interest.