Liabilities reflected on the balance sheet are divided into two general categories: current (debts to be paid within one year) and long term (due more than a year into the future).

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Liabilities on the balance sheet are indeed classified into current and long-term categories based on their due date. Current liabilities are those to be settled within one year, while long-term liabilities are those with a maturity date over a year from the balance sheet date.

Liabilities Reflected on the Balance Sheet Are Divided into Two