The journal entry to reclassify a noncurrent liability as a current liability includes a debit to the current portion of long-term obligations.

Question

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The journal entry to reclassify a noncurrent liability as a current liability does not involve a debit or credit to the current portion of long-term obligations directly. Instead, it involves decreasing the noncurrent liability account and increasing the current liability account, without directly affecting the income statement accounts.

The Journal Entry to Reclassify a Noncurrent Liability as a Current