Two common subgroups for liabilities on a classified balance sheet are:
A)Current liabilities and intangible liabilities.
B)Present liabilities and operating liabilities.
C)General liabilities and specific liabilities.
D)Intangible liabilities and long-term liabilities.
E)Current liabilities and long-term liabilities.

Question

Quizplus · Accepted Answer

The two common subgroups for liabilities on a classified balance sheet are current liabilities and long-term liabilities. Current liabilities are obligations that are due within one year or within the normal operating cycle of the business, whichever is longer. Long-term liabilities are obligations that will not be due within one year or within the normal operating cycle of the business, whichever is longer.

Two Common Subgroups for Liabilities on a Classified Balance Sheet