A single liability can be divided between current and noncurrent liabilities.

Question

Quizplus · Accepted Answer

A single liability can have a portion that is due within the current accounting period (typically one year) and a portion that is due after the current period, making it both a current and noncurrent liability. Example: a long-term loan with annual payments. The portion that is due within the next year would be a current liability, while the remaining balance would be a noncurrent liability.

A Single Liability Can Be Divided Between Current and Noncurrent