The current portion of long-term debt is classified as a current liability only if it is due within the next year and is to be paid from current assets.

Question

Quizplus · Accepted Answer

The statement is true. Current portion of long-term debt refers to the amount of principal or interest of a long-term debt that is due within the next twelve months. It is classified as a current liability as it is required to be paid within the next year from current assets.

The Current Portion of Long-Term Debt Is Classified as a Current