With both types of instalment notes payable, the reduction in principal for the next year must be reported as
A) a non- current liability.
B) a non-current asset.
C) a current liability.
D) a current asset.

Question

Quizplus · Accepted Answer

The reduction in principal for the next year on instalment notes payable is considered a current liability because it represents the amount that is due within the next 12 months.

With Both Types of Instalment Notes Payable, the Reduction in Principal