The current portion of a long-term note payable refers to the amount of interest on a note payable that must be paid in the current year.

Question

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The current portion of a long-term note payable refers to the principal amount of the note that is due in the current year, not the interest. The interest expense for a note payable is typically recorded as an expense in the period it is incurred, not just in the current year.

The Current Portion of a Long-Term Note Payable Refers to the Amount