To the extent that long-term debt is repayable within the same period as current liabilities, it should be classified as a current liability.

Question

Quizplus · Accepted Answer

Long-term debt that is due for repayment within the current fiscal year or operating cycle (whichever is longer) should be classified as a current liability because it represents an obligation that needs to be settled in the short term.

To the Extent That Long-Term Debt Is Repayable Within the Same