The current portion of long-term debt should be reported:
A)Separately in the long-term liabilities section of the balance sheet.
B)In the long-term liabilities section of the balance sheet,along with the other long-term debt.
C)In the current liabilities section of the balance sheet.
D)In a separate section of the balance sheet,between long-term liabilities and shareholders' equity.

Question

Quizplus · Accepted Answer

The current portion of long-term debt should be reported in the current liabilities section of the balance sheet because it represents debt that is due within the next 12 months. Separating it from the other long-term debt in the long-term liabilities section would not accurately reflect the company's current financial obligations.

The Current Portion of Long-Term Debt Should Be Reported