When is a liability classified as current? A. A liability that is due and payable within one year, or operationg cycle if longer than one year, from the balance sheet date is classified as current. B. The liability must be due and payable within five years from the balance sheet date. C. If the entity's operating cycle is less than one month, then the liability will be classified as current if it is due and payable within three years. D. A liability is classified as current if the obligation is liquidated through the use of a current asset or the creation of another current liability