Current portion of long term debt

Accounting Dictionary

Current portion of long term debt

The current portion of long term debt consists of the payments on a multi-year loan that must be made this year.

If you have a 30 year mortgage, this is a long term debt. You have 30 years to pay back the loan. However, you will probably make 12 payments this year. The payments that are due this year would be the current portion of long term debt.

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