The currently maturing portion of long-term debt should be classified as a current liability if
A) the debt is to be converted into capital stock.
B) the debt is to be refinanced on a long-term basis.
C) the funds used to liquidate it are currently classified as a long-term investment on the balance sheet.
D) the portion so classified will be liquidated within one year using current assets.

Question

Quizplus · Accepted Answer

The currently maturing portion of long-term debt is classified as a current liability when it is expected to be liquidated within one year using current assets. This reflects the obligation's short-term nature and its impact on the company's liquidity.

The Currently Maturing Portion of Long-Term Debt Should Be Classified