Final answer:
The current portion of long-term debt on a balance sheet represents the amount of long-term liability that must be paid within the next year.
Step-by-step explanation:
The portion of a long-term liability that will be paid within the next year is referred to and reported as the current portion of long-term debt. This is found on a company's balance sheet within the liabilities section. It represents the amount that needs to be paid within the forthcoming fiscal year out of the total obligation that was initially recognized as long-term. Understanding this concept is crucial for managing a firm's finances and for making informed business decisions related to cash flow management.