The Current Portion of Long-Term Debt

question 15

Multiple Choice

The current portion of long-term debt:

• A) Refers to the part of long-term debt that is due within one year.
• B) Is shown separately from the long term portion on the balance sheet.
• C) Must be disclosed.
• D) Will be a known amount.
• E) All of these answers are correct.

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Definitions:

Principal

The balance, or amount of money, in an account, or amount borrowed.

Interest

The cost of borrowing money or the payment received for lending money, usually expressed as a percentage of the principal.

Credit Card Statement

An accounting of the credits and debits in the form of a monthly report sent to a credit card holder.

Spreadsheet Formula

A mathematical expression used in spreadsheet software to perform calculations, analyze data, and automate tasks within cells of a spreadsheet.