The classified balance sheet will have liabilities divided into the following 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 most common way to divide liabilities on a balance sheet is between current liabilities (short-term obligations that are due within a year) and long-term liabilities (obligations that will not be due within a year). This allows readers to easily see which liabilities are due soon and which ones are not due until later. Therefore, Choice A is the best answer.

The Classified Balance Sheet Will Have Liabilities Divided into the Following