Current maturities of long-term debt: permit a more accurate determination of working capital. represent cash that has been set aside for debt payments due within a year. are classified with long-term debt. reflect overdue installments of bonds payable.

Question

Theresa Harrison

Business

27 December, 07:44

Current maturities of long-term debt: permit a more accurate determination of working capital. represent cash that has been set aside for debt payments due within a year. are classified with long-term debt. reflect overdue installments of bonds payable.

+4

Answers (1)

Know the Answer?

Maddison · Answer 1

The correct answer is that it permits or allows a more accurate determination or ascertainment of the working capital.

Explanation:

Current maturities of the long term debt means that the portion or part of the liabilities of the company which are due in the next twelve months. And the working capital is the capital of business which is needed for daily operations of the business.

So, the present maturities of the debt which is long term, allows the more true and accurate ascertainment of the working capital.