On the balance sheet, liabilities are generally classified as
A)current or long-term
B)legal or nonlegal
C)material or immaterial
D)probable or estimated

Question

Quizplus · Accepted Answer

Liabilities on the balance sheet are usually classified as either current or long-term depending on their maturity. Current liabilities are those that must be paid within one year or the operating cycle, whichever is longer, while long-term liabilities are those that are due beyond one year or the operating cycle. This classification helps investors and creditors assess a company's liquidity and ability to meet its obligations in the short- and long-term.

On the Balance Sheet, Liabilities Are Generally Classified as