Assets and liabilities are classified as either current or non-current to show their relative liquidity.

Question

Quizplus · Accepted Answer

This statement is true. Assets and liabilities are typically classified as current or non-current on a company's balance sheet to reflect their relative liquidity. Current assets and liabilities are those that are expected to be either used up or paid within one year, while non-current assets and liabilities are expected to last for longer than one year.

Assets and Liabilities Are Classified as Either Current or Non-Current