Final answer:
The statement is false. A portion of a long-term liability due within the next year is actually classified as a current liability, not a long-term liability. The correct option is B. False
Step-by-step explanation:
The statement 'Any portion of a long-term liability that is due within the next year is classified as a long-term liability' is false. The correct classification of a portion of a long-term liability that is due within the next year is a current liability. In financial accounting, long-term liabilities are obligations that are not due to be settled within one year. However, if a part of that long-term liability is due within the next year, it should be reported as a current liability, which is a separate category on the balance sheet.
For example, consider a company that has taken out a 10-year loan. If the company is expected to make payments on this loan in the next year, the amount due within that year falls under 'current liabilities,' while the remainder that is not due within the year remains under 'long-term liabilities.'
The correct option is B. False