The non-current liabilities of a ﬁrm are liabilities:
A)that come due within the next 12 months.
B)that do not come due for at least 12 months.
C)owed to the ﬁrm's suppliers.
D)owed to the ﬁrm's shareholders.
E)the ﬁrm expects to incur within the next 12 months.

Question

Quizplus · Accepted Answer

Non-current liabilities are those that are not expected to be paid off within the next 12 months. These can include long-term loans, bonds, and deferred taxes. Choices A, C, D, and E all refer to liabilities that are either current or expected to be incurred within the next 12 months.

The Non-Current Liabilities of a ﬁRm Are Liabilities