What is the difference between current and non-current liabilities?
A)current liabilities are due to be paid within a year, while non-current liabilities are due more than a year into the future
B)current liabilities arose within the past year, while non-current liabilities arose more than a year ago
C)current liabilities are known to exist right now, while non-current liabilities will not be known until some time in the future
D)current liabilities are payable on specific due dates, while non-current liabilities can be repaid at any

Question

Quizplus · Accepted Answer

Current liabilities are obligations that must be settled within a year, while non-current liabilities are obligations that need to be paid more than a year into the future. This differentiation is important for financial reporting purposes, as it helps analysts and investors understand a company's short-term and long-term debt obligations.

What Is the Difference Between Current and Non-Current Liabilities