Since Payment Is Due Within One Year,the Current Portion of Long-Term

question 65

True/False

Since payment is due within one year,the current portion of long-term debt should be reported separately in the long-term liabilities section of the balance sheet.

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Definitions:

Profitability Ratios

Financial metrics used to evaluate a company's ability to generate profit relative to its revenue, assets, equity, or other financial metrics.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues; also known as net earnings or net profit.

Equity

Represents the shareholder's ownership interest in a company, calculated as the difference between total assets and total liabilities.

Debt-Equity Ratio

An evaluation of corporate leverage, calculated by the division of a company's total liabilities by the equity of its shareholders.