Which of the following statements is true? a. If any portion of a non-current liability is to be paid in the next year, the entire debt should be classified as a current liability. b. "Current maturities of non-current debt” refers to the amount of interest on notes payable that must be paid in the current year. c. Even though current and non-current debt must be shown separately on the statement of financial position, it is not necessary to prepare a journal entry to recognize this. d. A non- current liability is an obligation that is expected to be paid within one year
Which of the following statements is true? a. If any portion of a non-current liability is to be paid in the next year, the entire debt should be classified as a current liability. b. "Current maturities of non-current debt” refers to the amount of interest on notes payable that must be paid in the current year. c. Even though current and non-current debt must be shown separately on the statement of financial position, it is not necessary to prepare a journal entry to recognize this. d. A non- current liability is an obligation that is expected to be paid within one year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statements is true?
a. If any portion of a non-current liability is to be paid in the next year, the entire debt should be classified as a current liability.
b. "Current maturities of non-current debt” refers to the amount of interest on notes payable that must be paid in the current year.
c. Even though current and non-current debt must be shown separately on the statement of financial position , it is not necessary to prepare a journal entry to recognize this.
d. A non- current liability is an obligation that is expected to be paid within one year.
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