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What is Current Portion of Long-Term Debt Explained about?

The current portion of issued bonds corresponds to the part of the outstanding balances payable to investors that must be paid within the accounting year. Bonds are securities that recognize a debt of the issuing entity to creditors. The current portion of a long-term debt is the part of the principal that must be paid in the next 12 months and should be reflected as a current liability.

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