A company's obligations not expected to be paid within the longer of one year of the balance sheet date or the next operating cycle are reported as current liabilities.

Question

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Current liabilities are expected to be paid within the next operating cycle or one year from the balance sheet date, whichever is longer. Obligations not expected to be paid within this timeframe are reported as long-term liabilities.

A Company's Obligations Not Expected to Be Paid Within the Longer