What is current liability and non-current liability?

1.	What is current liability and non-current liability?
Answer» 1. Current Liability: A liability shall be classified as current if it satisfies any of the following criteria : If it is expected to be settled in the company’s normal operating cycle. If it is held primarily for the purpose being traded If it is due to be settled withing twelve months after the reporting date. 2. Non-current Liability: All other liabilities except current liabilities are classified as non-current liabilities.

Answer»

1. Current Liability: A liability shall be classified as current if it satisfies any of the following criteria :

2. Non-current Liability: All other liabilities except current liabilities are classified as non-current liabilities.

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