The Current Portion of Long-Term Notes Payable Is ________

question 64

Multiple Choice

The current portion of long-term notes payable is ________.

• A) the amount of principal that will be paid within five years
• B) typically included with the long-term liabilities on the balance sheet
• C) recorded as an adjusting entry
• D) reclassified as current for reporting purposes on the balance sheet

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Definitions:

Capital Account

A financial statement that shows the changes in ownership interest of a company over a period.

Noncumulative

Pertains to dividends or other rights that do not accumulate if not paid or exercised in the period they are due.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock which must be paid out before any dividends can be distributed to common stockholders.

Dividends Payable

A liability on a company's balance sheet representing the amount owed to shareholders in the form of dividends that have been declared but not yet paid.