Q: At some point can you explain why we use prior period CMLTD?
A: The prior period CMLTD is due and payable in the next period. The Current Maturities of Long-Term Debt or the Current Maturities of Long-term Leases represent the portion of the long term obligation that is due in the next period. Therefore, a year-end 2020 CMLTD balance will be due and payable in 2021. The 2021 year-end CMLTD are to be paid in 2022.
Course overview: Identifying and Mitigating Repayment Risks