If a long-term debt is to be paid off in monthly installments over a 5-year period, the entire principal should be classified as a noncurrent liability.

Name: If a long-term debt is to be paid off in monthly installments over a 5-year period, the entire principal should be classified as a noncurrent liability.
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Question

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A portion of the principal that is due within the next 12 months should be classified as a current liability, while the remaining balance is classified as a noncurrent liability.

If a Long-Term Debt Is to Be Paid Off in Monthly