What is the key distinction between current and non- current liabilities?
A)Non- current liabilities are permanent debts of the business.
B)Non- current liabilities always increase over time.
C)Current liabilities always have lower balances than non- current liabilities.
D)Current liabilities will be paid off within one year or one operating cycle.

Question

Quizplus · Accepted Answer

Current liabilities are obligations that a company expects to settle within one year or one operating cycle, whichever is longer, whereas non-current liabilities are due after this period.

What Is the Key Distinction Between Current and Non- Current