Accounting rules require that the current maturities of long-term debt obligations be classified as short-term liabilities.

Question

Quizplus · Accepted Answer

Accounting rules require that any portion of long-term debt that is due within the next year be classified as a current liability on the balance sheet. This reflects the fact that the company will need to use current assets or obtain financing within the next year to meet this obligation.

Accounting Rules Require That the Current Maturities of Long-Term Debt