The Current Portion of Noncurrent Debt Should Be Reported

question 137

Multiple Choice

The current portion of noncurrent debt should be reported:

• A) Separately in the noncurrent liabilities section of the statement of financial position.
• B) In the noncurrent liabilities section of the statement of financial position, along with the other long-term debt.
• C) In the current liabilities section of the statement of financial position.
• D) In a separate section of the statement of financial position, between noncurrent liabilities and shareholders' equity.

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Definitions:

Efficiency

The optimal use of resources to achieve the desired ends with minimum waste or effort.

Equity

The concept of fairness or justice within the economy that deals with the distribution of wealth and resources.

Trade

The exchange of goods, services, or both within and between countries.

Specialize

To focus on a particular area of production or work, allowing for increased efficiency and expertise in that area.