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Discuss how a form of debt can be classified as both Current and Long-Term Liabilities. Why...

Discuss how a form of debt can be classified as both Current and Long-Term Liabilities. Why do investors care?

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A debt can be classified as both current and long term liabilities as a long term debt or a part of that long term debt could be due to be paid in current year . However such debt is shown CPLDT which refers to current portion of long term debt which is the section of company's balance sheet that records the total amount of long -term debt that must be paid within the current year   

The CPLTD is an important tool for creditors and investors to use to identify if a company has the ability to pay off its short-term obligations as they come due.

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