For U.S.GAAP reporters,when a long-term obligation becomes payable within the next year,it should be reclassified as a current liability when it will be paid with current assets or the creation of another current liability.

Question

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According to U.S. GAAP, a long-term obligation that becomes payable within the next year should be reclassified as a current liability when it will be paid with current assets or the creation of another current liability. Therefore, the statement is true.

For USGAAP Reporters,when a Long-Term Obligation Becomes Payable Within the Next