Final answer:
Short-term obligations are reclassified as long-term liabilities when refinanced with a due date beyond one year from the balance sheet date. Setting goals is pivotal for planning, while credit affects economic success but requires wise management.
Step-by-step explanation:
Short term obligations are recorded as long term liabilities when they are refinanced or rolled over into a new obligation with a due date beyond one year from the balance sheet date. A common example is when a business takes out a new loan to pay off a short term debt, effectively extending the due date and reclassifying the obligation as long-term.
Setting short term and long term goals is crucial for educational and career planning, providing direction and benchmarks for success. Meanwhile, obtaining credit can greatly influence economic success by enabling investments in education and entrepreneurial endeavors, but it must be managed wisely to maintain financial health and creditworthiness which are key for future borrowing.