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:

Formal Instrument of Credit

A written document that acknowledges debt and specifies the terms under which it will be repaid.

Note Receivable

Note receivable is a financial asset representing a written promise to receive a specific amount of money, plus interest, by a certain date.

Notes Receivable

A claim or right to receive a determinable sum of money from another party as evidenced by a promissory note.

Interest

The cost of borrowing money or the return on invested funds, generally expressed as a percentage rate over a period of time.