Asked by David Adamovich on Jul 09, 2024
Verified
A liability cannot be divided between current and noncurrent liabilities.
Current Liabilities
Obligations that a company is expected to pay within one year or within its normal operating cycle, whichever is longer, including accounts payable, short-term loans, and taxes payable.
Noncurrent Liabilities
Obligations of a company not due for settlement within the next 12 months, such as long-term loans, bond payables, and lease liabilities.
- Identify the differences between current liabilities and noncurrent liabilities.
Verified Answer
MG
Melika golforoushJul 16, 2024
Final Answer :
False
Explanation :
A liability can indeed be divided between current and noncurrent liabilities, based on its expected settlement date; current liabilities are due within one year, while noncurrent liabilities are due after one year.
Learning Objectives
- Identify the differences between current liabilities and noncurrent liabilities.
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