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Long term liability becomes the current liability in that year in which it is to be cleared so Yes, long term liability become current liability.
a current liability
Long term
Yes it is a current liability
If loan is payable within twelve month of issuance of loan then it is current liability but if it is payable in more than one fiscal year then it is long term liability but even in long term loan, that portion of loan which is payable in current fiscal year is current liability and remaining portion is long term liability.
NO. But the Current maturities of long-term debt is an operating liability.
Purpose to report is to show that how much portion of long term debt will be paid or payable in current accounting year that's why that portion became current liability and not long term liability.
Current portion of long term loan is classified as current liability and shown under current liability section of balance sheet.
no
It should be current liability because it is made monthly, not per year.
be reclassified as a current liability
Yes current liability is that liability which is payable within one fiscal year otherwise it is that portion of long term liability which is payable within one year remaining portion will be long term liability.