What are the two classification of liabilities?

Liabilities are typically classified into two categories: current liabilities and non-current liabilities. Current liabilities are obligations expected to be settled within one year, such as Accounts Payable and short-term loans. Non-current liabilities, on the other hand, are obligations due beyond one year, such as long-term debt and deferred tax liabilities. This classification helps businesses manage their financial obligations and assess their liquidity.