On the balance sheet, liabilities are generally classified as

A) current or long-term
B) legal or nonlegal
C) material or immaterial
D) probable or estimated

Liabilities on the balance sheet are usually classified as either current or long-term depending on their maturity. Current liabilities are those that must be paid within one year or the operating cycle, whichever is longer, while long-term liabilities are those that are due beyond one year or the operating cycle. This classification helps investors and creditors assess a company's liquidity and ability to meet its obligations in the short- and long-term.