Current Portion of Long Term Debt definitions Flashcards
Current Portion of Long Term Debt definitions
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Long-term Liability
Obligation not due within the next year, typically reported separately from amounts due in the short term. Current Liability
Obligation expected to be settled within one year, including amounts reclassified from long-term debt. Principal
Original amount borrowed or outstanding on a loan, excluding any interest. Note Payable
Formal written promise to pay a specified sum, often with interest, at future dates. Current Portion of Long Term Debt
Amount of principal from a long-term loan that must be repaid within the next year, shown as a current liability. Interest Expense
Cost incurred for borrowing funds, calculated on the outstanding principal over a period. Interest Payable
Accrued but unpaid interest owed at the end of an accounting period, classified as a current liability. Reclassification Entry
Journal entry moving a portion of a long-term liability to current liabilities as repayment becomes imminent. Installment
Regularly scheduled payment that reduces both principal and interest on a loan. Adjusting Entry
End-of-period journal entry ensuring financial statements reflect accrued expenses and reclassified liabilities. Repayment Schedule
Plan outlining the timing and amounts of principal and interest payments over the life of a loan. Accrued Interest
Interest that has accumulated but has not yet been paid by the end of the accounting period. Balance Sheet
Financial statement presenting a snapshot of assets, liabilities, and equity at a specific date. Journal Entry
Accounting record documenting the debit and credit effects of a transaction in the financial system. Outstanding Principal
Remaining unpaid portion of the original loan amount, used to calculate future interest.
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