Two common subgroups for liabilities on a classified balance sheet are:
A) Current liabilities and intangible liabilities.
B) Current liabilities and long-term liabilities.
C) Present liabilities and operating liabilities.
D) General liabilities and specific liabilities.
E) Intangible liabilities and long-term liabilities.

Question

Quizplus · Accepted Answer

The two common subgroups for liabilities on a classified balance sheet are current liabilities (those due within one year) and long-term liabilities (those due after one year). This categorization helps investors and analysts understand a company's short-term and long-term financial obligations.

Two Common Subgroups for Liabilities on a Classified Balance Sheet