Final answer:
Current maturities of long-term debt are the portion of long-term debt due within the next year, classified as current liabilities on a company's balance sheet.
Step-by-step explanation:
Current maturities of long-term debt refer to the portion of a company's long-term debt that is scheduled to be repaid within the next year. When a company has a bond, the bond typically has a face value which is the amount owed to the bondholder at the maturity date, and a coupon rate, which is the interest that is paid periodically. As the bond approaches its maturity date, part of the long-term debt becomes short-term because it is due within the next twelve months. The correct answer to the student's question is:
D: the amount of long-term debt on a note payable due within one year.
This portion is reclassified as current liabilities on the balance sheet because it is an obligation that needs to be met in the short term.