Liabilities are generally classified on a balance sheet as
A) small liabilities and large liabilities.
B) present liabilities and future liabilities.
C) tangible liabilities and intangible liabilities.
D) current liabilities and long-term liabilities.

Question

Quizplus · Accepted Answer

Liabilities are generally classified on a balance sheet as current liabilities, which are expected to be settled within one year, and long-term liabilities, which are expected to be settled in a period longer than one year. This classification helps to show the company's ability to meet its short-term and long-term obligations.

Liabilities Are Generally Classified on a Balance Sheet as