At the end of each year, a company must reclassify from long-term debt to a current liability the amount of its long-term debt that is due next year.

Name: At the end of each year, a company must reclassify from long-term debt to a current liability the amount of its long-term debt that is due next year.
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This is a standard accounting practice to ensure that the financial statements accurately reflect the company's obligations that are due within the next year.

At the End of Each Year, a Company Must Reclassify