The current portion of notes payable must be reported on the balance sheet under current liabilities and the long-term portion under long-term liabilities.

Question

Quizplus · Accepted Answer

This is a correct statement. It is important to distinguish between the current portion of notes payable, which is due within the next year, and the long-term portion, which is not due until after the next year. The current portion should be reported under current liabilities on the balance sheet, and the long-term portion should be reported under long-term liabilities.

The Current Portion of Notes Payable Must Be Reported on the Balance