Question - Current liability is a company obligation that is due within one year of the date of a company's balance sheet and are to be settled in cash within the fiscal year or the operating cycle of a given company. When a liability is misclassified it could misled people reading your balance sheet into believing the company has a lot more time than it does to satisfy those debts, it can also result to an inaccurate net worth calculation of an organization and it can results in legal implication, where a firm is sued for cooking accounting books.
Would you think the misclassification is fraud? Why?