1RQ - Horngren'S Financial And Managerial Accounting

Question

Where is the current portion of notes payable reported on the balance sheet?

Step-by-Step Solution

Answer

The current portion of the notes payable means the portion which becomes due within 12 months.

Step 1: Definition of notes payable

A note payable is a written document where the borrower borrows the money for a fixed period.

Step 2: Current portion of the notes payable

As the notes payable are a liability for the company hence, the current portion of the bonds payable is shown in the current liabilities.