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.

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Definitions:

Bond Premium

The additional amount over the face value for which a bond is sold, representing the difference between its selling price and its face value.

EPS

Earnings Per Share, a financial ratio indicating the amount of profit attributed to each outstanding share of common stock, used to gauge a company's profitability.

Bond Indenture

A legal contract between a bond issuer and bondholders detailing the characteristics of the bond, such as its maturity date, coupon rate, and payment schedule.

Bond Issuer

An entity, such as a corporation or government, that creates and sells bonds to finance its projects and operations.