The Current Portion of Long-Term Debt Should Be Reported

question 29

Multiple Choice

The current portion of long-term debt should be reported:

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

---

Definitions:

Profit-Volume Ratio

A financial tool used to analyze the relationship between profit and sales volume, showing the impact of sales changes on profits.

Unit Contribution Margin

The dollars available from each unit of sales to cover fixed costs and provide operating profits.

Break-Even Point

The level of operations at which a company’s revenues and expenses are equal.

Contribution Margin Ratio

A financial metric that measures a product's profitability by calculating the difference between its sales and variable costs as a percentage of total sales.