The portion of land debt due after this year is classified as which?

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Multiple Choice

The portion of land debt due after this year is classified as which?

Explanation:
On a balance sheet, debts are grouped by when they’re due. The portion of land debt that must be paid after this year isn’t due within the next 12 months, so it’s considered a long-term or non-current liability. Current liabilities are obligations due within a year, while equity represents the owner’s stake, not a debt. So the correct classification for the portion due after this year is a non-current liability.

On a balance sheet, debts are grouped by when they’re due. The portion of land debt that must be paid after this year isn’t due within the next 12 months, so it’s considered a long-term or non-current liability. Current liabilities are obligations due within a year, while equity represents the owner’s stake, not a debt. So the correct classification for the portion due after this year is a non-current liability.

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