The classified balance sheet will show which liability subsections?
A) current liabilities and long-term liabilities
B) current liabilities and other liabilities
C) other liabilities and long-term liabilities
D) present liabilities and tomorrow's liabilities

Question

Quizplus · Accepted Answer

The classified balance sheet divides liabilities into current liabilities and long-term liabilities. This separation helps users of the financial statements understand the company's obligations that will be due in the short-term (within one year) versus those that will be due in the long-term (more than one year).

The Classified Balance Sheet Will Show Which Liability Subsections