The distinction between current and non-current liabilities is based on:
A)Whether the liability is secured or unsecured
B)The size of the liability
C)Whom the liability is owned to
D)When the liability is due for payment

Question

Quizplus · Accepted Answer

The distinction between current and non-current liabilities is based on when the liability is due for payment. Current liabilities are those that are due within a year or operating cycle, whichever is longer, while non-current liabilities are those that are due after a year or operating cycle.

The Distinction Between Current and Non-Current Liabilities Is Based On