What is classified as a "non-current" liability?

Question

Quizplus · Accepted Answer

A "non-current" liability is an obligation that is not expected to be settled within the ordinary operating cycle of the business, typically longer than one year after the balance sheet date. Option D correctly identifies such a liability. Options A and B, on the other hand, describe "current" liabilities, which are obligations expected to be settled within the ordinary operating cycle or within one year after the balance sheet date. Option C, on the other hand, refers to a breach of covenant, which is a violation of terms or conditions agreed upon in a contract, and may or may not result in a liability depending on the specific circumstances.

What Is Classified as a "Non-Current" Liability