A current liability has two important features. A company expects to pay the debt from existing current assets or through the creation of other current liabilities. The company will pay the debt within one year or the operating cycle, whichever is longer. To be classified as a current liability a debt must be expected to be paid out of existing current assets and by creating other current liabilities. Non current liabilities are a companies long term financial obligation that are not due within the present accounting year.
Why Are Liabilities Classified On A Balance Sheet As Current And Non-current? Who Wants To Know? What Is The Benefit Of Knowing This Information?
The best way to find information to help you answer this question is to look up 'balance sheet' in a search engine - this way you will find several helpful sites such as this one. You can also look for more specific information by adding the words 'current non current' - this should help you to find the answer.