Liabilities are classified on the balance sheet as current or
A) deferred.
B) unearned.
C) long-term.
D) accrued.

Question

Quizplus · Accepted Answer

Liabilities on the balance sheet are classified as either current or long-term. Current liabilities are obligations due within one year, while long-term liabilities are obligations due over a period of more than one year. Deferred, unearned, and accrued are terms that may be used to describe specific types of liabilities, but they do not represent classifications on the balance sheet.

Liabilities Are Classified on the Balance Sheet as Current or