Liabilities are classified on the balance sheet as current or

Liabilities are classified on the balance sheet as current or non-current liabilities.

1. Current Liabilities: These are obligations that are due within one year from the reporting date. They include accounts payable, short-term loans, accrued expenses, and any other debts that are expected to be settled within the year.

2. Non-current Liabilities: These are obligations that are not due within one year. They include long-term debt, deferred tax liabilities, and other long-term financial commitments.

The classification is important for financial analysis as it helps stakeholders assess a company's short-term financial health and liquidity. The distinction allows for a better understanding of the company's financial obligations and its ability to meet those obligations in the short and long term.