Liabilities are classified on the statement of financial position as current or
A) deferred.
B) unearned.
C) non-current.
D) accrued.

Question

Quizplus · Accepted Answer

Liabilities are classified as current if they are expected to be settled within one year or the operating cycle, whichever is longer. Liabilities that are expected to be settled after one year are classified as non-current. Deferred, unearned, and accrued are terms that may be used to describe certain types of liabilities, but they do not determine their classification as current or non-current.

Liabilities Are Classified on the Statement of Financial Position as Current