?

Financial Accounting

Free Version

Upgrade subject to access all content

Easy

Describe Features of Current and Noncurrent Liabilities

FINACT-1EYIZR

All of the statements below correctly describe features of current and non-current liabilities except one.

Which one does NOT describe current or non-current liabilities properly?

A

Current liabilities are obligations due within one year or the operating cycle, whichever is longer.

B

All payments expected to be made in the next year are current liabilities.

C

A single liability can be divided into its current portion and its non-current portion.

D

A company can have a liability even if the exact amount of the obligation is not known.