The current portion of long-term debt should
A) be paid immediately.
B) be reclassified as a current liability.
C) be classified as a long-term liability.
D) not be separated from the long-term portion of debt.

Question

Quizplus · Accepted Answer

The current portion of long-term debt represents the portion of the long-term debt that is due within the next year. Therefore, it should be reclassified as a current liability on the balance sheet. This helps to accurately reflect the company's short-term debt obligations and liquidity.

The Current Portion of Long-Term Debt Should