The Current Portion of a Long-Term Note Payable Refers to the Amount

question 36

True/False

The current portion of a long-term note payable refers to the amount of interest on a note payable that must be paid in the current year.

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Definitions:

External Financing Need

The gap between the funding a firm needs for its operations and investments, and the amount it can generate internally, implying the need to seek external funding.

Projected Growth Rate

An estimate of the rate at which a company's earnings or revenues are expected to grow in the future.

Sales Increases

A measurement of the rise in a company's sales over a specific period, indicating growth in business operations.

Capital Intensity Ratio

A metric used to determine the amount of assets required to generate a dollar of revenue; higher ratios indicate more assets are needed.