Liabilities have which of the following two major categories?
A) Investments and long term
B) Contributed capital and retained earnings
C) Current and long term
D) Current and intangible

Question

Quizplus · Accepted Answer

The two major categories of liabilities are current liabilities (debts due within one year) and long-term liabilities (debts due after one year). Choice A is incorrect because investments are usually listed as assets on the balance sheet. Choice B is incorrect because contributed capital and retained earnings are both components of shareholders' equity, not liabilities. Choice D is incorrect because intangible assets are listed as assets on the balance sheet, not liabilities.

Liabilities Have Which of the Following Two Major Categories