Question: Long term obligations usually are reclassified and reported as c
Long-term obligations usually are reclassified and reported as current liabilities when they become payable within the upcoming year (or operating cycle, if longer than a year). So, a 25-year bond issue is reported as a long-term liability for 24 years but normally is reported as a current liability on the balance sheet prepared during the 25th year of its term to maturity. Name a situation in which this would not be the case.
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