When companies have debt that is not due to be paid for several years but that is callable (due on demand) by the creditor, do they classify the debt as current or as long-term?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
When companies have debt that is not due to be paid for several years but that is callable (due on demand) by the creditor, do they classify the debt as current or as long-term?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
