The Current Portion of Long-Term Debt Should Be

question 97

Multiple Choice

The current portion of long-term debt should be

• A)Reported as a current liability on the balance sheet.
• B)Reported as a long-term liability on the balance sheet.
• C)Combined with the rest of the long-term debt on the balance sheet.
• D)Paid immediately.

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Definitions:

Adjusting

The process of making entries to update internal accounts for events that have transpired but are not yet recorded at the end of an accounting period.

Cash Basis

An accounting method where revenues are recognized when cash is received, and expenses are recorded when cash is paid out.

Accounting

The systematic process of recording, summarizing, and analyzing an organization's financial transactions.

GAAP

Generally Accepted Accounting Principles; the common set of accounting standards and procedures used in the U.S.