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:

Depreciation Expense

A non-cash expense recorded on the income statement, reflecting the gradual reduction of an asset's value over its useful life.

Net Loss

When expenses total more than revenue, the result is net loss.

Supplies on Hand

An accounting term representing the total value of the physical goods, materials, and supplies a company possesses that have not been used yet.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specified period.