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The current portion of long-term debt is classified with the ____
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∙ 14y ago
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What is the current portion of long term debt classified with?
liabilities
What is the current portion of long-term debt classified with?
Current portion of long term loan is classified as current liability and shown under current liability section of balance sheet.
All long-term debt maturing within the next year must be classified as a current liability on the balance sheet?
Yes. Usually separated and called "Current Portion of Long-Term Debt"
Does current portion of long term debt include interest?
No, only the principal to be paid during that year. Interest is separated and classified as Interest Expense.
Current maturities of long-term debt?
Current maturities of long term debt means that portion of debt which is payable in current fiscal year.
The current portion of long-term debt should?
be reclassified as a current liability
Would any part of a 5-year auto loan be considered a current liability?
The portion of payments due in the current period (1 yr) are considered the current portion of long term debt; the remainder would be considered long term debt, though this is difficult to justify, given that auto loans are consumer debt - that is debt that is not tax deductable. The portion of payments due in the current period (1 yr) are considered the current portion of long term debt; the remainder would be considered long term debt, though this is difficult to justify, given that auto loans are consumer debt - that is debt that is not tax deductable.
What is the purpose of reporting current maturities of long term debt?
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 maturity Of Long-Term Debt?
Current maturity of long-term debt is the amount which is liable to pay in current fiscal year Example: Long-term loan payable in 10 years = 10000 Current portion of loan payable in current year = 1000 Remaining portion payable in next 9 year = 9000 is the long-term debt payable
Does long term debt and short term portion of long term debt include interest?
No. Only the current amount of interest due and/or accrued is shown as Interest Payable under Current Liabilities.
Is short-term debt the same as current liabilities?
Essentially, yes.Many times a company has Long-term debt, with a certain amount to be repaid within the year. On the company's balance sheet they will have the remaining amount of their Long-term debtincluded in Non-Current Liabilities, while in Current liabilities they will have the Current portion of long-term debt.Basically, the balance sheet has a section for Current liabilities, which would include accounts with debts to be repaid in the short-term (generally within the year). Normally it is not listed as Short-term debt, but rather an account like Accounts payable or Bank loan, or as I stated earlier, Current portion of long-term debt.
Current installment of long term debt?
The current portion of long-term debt is usually broken out to an a liability account known as Current Portion-Long Term Debt. This is usually for a 12-month period. Using the amortization schedule for the loan, debit the long-term note account for the 12 month period of principal and credit the short-term liability account. Then when the payment is made, debit the principal to the short-term account and the interest to interest expense.
