A liability account whose balance is the unpaid principal balance as of the balance sheet date. The amount of principal required to be paid within 12 months of the balance sheet date is reported as a current liability. The unpaid principal balance not due within one year of the balance sheet date is reported as a long term liability.
Featured Review
"I found AccountingCoach when I was preparing to apply for positions in the accounting field after an absence of 15 years. I previously worked for 6+ years as an accounts receivable clerk and general accounting assistant, but I felt that my skills were rusty and wished to refresh my memory on the basic principles of accounting. This was exactly what I needed. I found that I really had not forgotten as much as I feared I had. With regained confidence, I was able to secure a position as an accounting assistant to an accounting manager for a small company." - Becky W.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,645 reviewsWe now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping: