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 dure 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 those that are due to be paid within a year, while non-current liabilities are due more than a year into the future. This distinction is important because different accounting and financial reporting rules apply to each type of liability, and they may have different impacts on a company's financial health and performance.

What Is the Difference Between Current and Non-Current Liabilities