Liabilities have which of the following two major categories?
A)Accounts payable and notes payable
B)Contributed capital and retained earnings
C)Current and long term
D)Unearned revenues and other payables

Question

Quizplus · Accepted Answer

Liabilities can be divided into two major categories: current liabilities and long-term liabilities. Current liabilities are obligations that are due within one year or the operating cycle, whichever is longer. Long-term liabilities are obligations that are due beyond the operating cycle or more than one year from the balance sheet date. Examples include long-term loans, bonds payable, and deferred income taxes.

Liabilities Have Which of the Following Two Major Categories