Two common subgroups for liabilities on a classified balance sheet are:
A) current liabilities and intangible liabilities.
B) present liabilities and operating liabilities.
C) general liabilities and specific liabilities.
D) intangible liabilities and long-term liabilities.
E) current liabilities and long-term liabilities.

Question

Quizplus · Accepted Answer

The two common subgroups for liabilities on a classified balance sheet are current liabilities, which are debts that are due within one year or the operating cycle, whichever is longer, and long-term liabilities, which are debts that are due over a period longer than one year or the operating cycle. Therefore, the best choice is E, current liabilities and long-term liabilities.

Two Common Subgroups for Liabilities on a Classified Balance Sheet