Obligations of the entity that can be paid over a period of more than one year from the balance sheet date are classified as:
A) non-current assets.
B) current liabilities.
C) non-current liabilities.
D) long-standing obligations.

Question

Quizplus · Accepted Answer

Obligations that can be paid over a period of more than one year from the balance sheet date are called long-term or non-current liabilities. This includes long-term loans, bonds, leases, and other contractual obligations that will not be due within the next year. Therefore, option C is the correct choice. Option A is incorrect because non-current assets refer to assets that cannot be easily converted into cash within one year. Option B is incorrect because current liabilities refers to obligations that are due within one year. Option D is not a recognized accounting term.

Obligations of the Entity That Can Be Paid Over a Period