The current portion of noncurrent debt should be reported:
A) Separately in the noncurrent liabilities section of the statement of financial position.
B) In the noncurrent liabilities section of the statement of financial position, along with the other long-term debt.
C) In the current liabilities section of the statement of financial position.
D) In a separate section of the statement of financial position, between noncurrent liabilities and shareholders' equity.

Question

Quizplus · Accepted Answer

The current portion of noncurrent debt represents the amount of long-term debt that is due within one year. Therefore, it should be reported in the current liabilities section of the statement of financial position, which represents obligations that are expected to be settled within one year. It should not be reported with the other long-term debt in the noncurrent liabilities section, as it has a different maturity date.

The Current Portion of Noncurrent Debt Should Be Reported