Kurt has a 5-year bank loan with his business.The principal that is scheduled to be paid in the first 12 months is considered ______.

A) a loss
B) a long-term liability
C) a short-term portion of long-term debt
D) operational cash flows

Short-Term Portion of Long-Term Debt

The part of a company's long-term debt that is due to be paid within the following twelve months.

5-Year Bank Loan

A financial agreement where a bank lends money to a borrower, to be repaid with interest over a period of five years.