Any debt that must be repaid within the next year is recorded on the balance sheet as:
A)a current liability.
B)long-term debt.
C)an intangible asset.
D)accounts receivable.
E)a current asset.

Question

Quizplus · Accepted Answer

Any debt that must be repaid within the next year is considered a short-term liability or a current liability. This is because it is expected to be paid off soon, typically within the next operating cycle or year. Current liabilities are reported on the balance sheet in order of when they are due, with the nearest due date listed first, followed by the next nearest due date, and so on.

Any Debt That Must Be Repaid Within the Next Year