What is the difference between non current and current liabilities?

Answer 1

Current liabilities are those debts which are due and payable within 1 year. Non-Current Liabiities are those which fall due in more than 1 Year. A long term loan payable over 5 years is both a current and non current liability. The portion payable within 1 year is current while the remaining porton payable from year 2 to 5 is non current.

Answer 2

• Liabilities

  Formal Definition:Claims by creditors to the property (assets) of a business until they are paid.

  Informal Definition:Other's claims to the business's stuff. Amounts the business owes to others.

  Additional Explanation: Usually one of a business's biggest liabilities (hopefully they are not past due) is to suppliers where they have bought goods and services and charged them.

  Liabilities are listed in the order of their expected payment date (maturity). In other words, how soon they must be repaid. Liability accounts are separated into current (short-term) liabilities and long-term liabilities. Short-Term Liabilities generally are debts that must be repaid within 1 year from the date of the balance sheet. Long-Term Liabilities are debts that must be paid more than 1 year from the date of the balance sheet.

  • Current Liabilities

    Current liabilities are the portion of obligations (amounts owed) due to be paid within the current operating cycle (normally a year) and that normally require the use of existing current assets to satisfy the debt.

    • Short Term Notes (Demand Notes)
    • Accounts Payable Trade

      A sub ledger is normally maintained in order to keep up with and track amounts owed to individual suppliers.

    • Accounts Payable Other
    • Payroll Liabilities
      • Accrued Salaries and Wages Payable
      • Employee Payroll Withholdings (Deductions)
        • Employee U.S. Federal Income Tax Withheld
        • Employee State Income Tax Withheld
        • Employee Local Income Tax Withheld
        • Employee FICA Withheld
        • Employee Medicare Withheld
        • Employee Garnishments Withheld
        • Employee Benefits
          • Employee Insurance Deduction Withheld
          • 401 K Deduction Withheld
          • IRA Deduction Withheld
        • Other Payroll Withholdings
      • Employer Provided Benefits
        • Mandatory
          • Employer FICA Contribution Payable
          • Employer Medicare Contribution Payable
          • Employer Federal Unemployment Payable
          • Employer State Unemployment Payable
          • Employer Workmen's Compensation Insurance Payable
        • Optional
          • Employer Provided Health Insurance Payable
          • Employer Provided Life Insurance Payable
          • Employer Provided 401 K Contributions Payable
          • Employer Provided IRA Contributions Payable
    • Sales Tax Payable
    • Unearned Revenues
    • Customer Advances and Deposits Payable
    • Interest Payable
    • Bank Loans (Notes Payable) - Current principal portion of Long-Term Notes
    • Notes Payable (other than bank notes) - Current principal portion of Long-Term Notes
    • Accrued and Estimated Liabilities
      • Accrued / Estimated Taxes Payable
        • Accrued real estate and Property Taxes Payable
        • Accrued Income and Franchise Taxes Payable
          • Accrued Federal Taxes Payable
          • Accrued State Taxes Payable
          • Accrued Local Taxes Payable
      • Other Accruals Payable
    • Other Current Liabilities
  • Long-Term Liabilities

    Long term liability accounts are the portions of debts with due dates greater than a year or the operating cycle. These are obligations that are not expected to be paid within the current operating cycle.

    • Bank Loans (Notes Payable) - Long Term principal portion
    • Notes Payable (other than bank notes) - Long Term principal portion
    • Other Long-Term Liabilities

Answer 3

Current liability is payable in current fiscal year while non-current liability is payable or remains for more than one fiscal year.