Liabilities are classified as Current Liability and Non-Current Liability on the Balance sheet.
Liability is an accounting term used to represent debts and obligations which the business owes to others.
- Examples of Liability includes Wages payable, Supplies payable, Owed Loans, Notes payable, Income taxes payable, Mortgages payable etc
- However, under the balance sheet, Liability are classified into two sections and includes the Current Liability and Non-Current Liability.
- The Current liabilities are known as Short term liabilities because they are liabilities that are due and payable within one year.
- The Non-current liabilities are known as Long-term liabilities because they are liabilities that are due after a year or more.
Read more on this here
brainly.com/question/15006644
