The current portion of non-current debt should
A)not be included in the statement of financial position.
B)be classified as a current liability on the statement of financial position.
C)be classified as a non-current liability on the statement of financial position.
D)be removed from the non-current debt with a journal entry.

Question

Quizplus · Accepted Answer

The current portion of non-current debt represents the amount of long-term debt that is due within the next 12 months. As such, it should be classified as a current liability on the statement of financial position. This reflects the fact that the company will need to use current assets or obtain new financing to meet this obligation within the next year.

The Current Portion of Non-Current Debt Should