Which of the following would be a "non-current liability"?
A)Payment due after 3 years,but the company has violated the debt covenants.
B)Payment due to a supplier 45 days after year end for supplies received before year end.
C)Payment due to a supplier in 18 months for goods to be received 3 months after year end.
D)Payment due after 3 years,on which the debt covenants have been not been violated.

Question

Quizplus · Accepted Answer

A non-current liability is a debt not due within the next 12 months. Option D is the only payment due after 3 years, and the fact that the debt covenants have not been violated indicates that there are no issues with the repayment terms. Options A, B, and C are all current liabilities as they are due within the next 12 months.

Which of the Following Would Be a "Non-Current Liability