What Is the Difference Between Current and Non-Current Liabilities

question 8

Multiple Choice

What is the difference between current and non-current liabilities?

• A)current liabilities are due to be paid within a year, while non-current liabilities are due more than a year into the future
• B)current liabilities arose within the past year, while non-current liabilities arose more than a year ago
• C)current liabilities are known to exist right now, while non-current liabilities will not be known until some time in the future
• D)current liabilities are payable on specific due dates, while non-current liabilities can be repaid at any

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Definitions:

Periodic Inventory System

An inventory accounting system where inventory counts and cost of goods sold calculations are made at set intervals, such as monthly or yearly.

Gross Method

An accounting practice where purchases are recorded at their full invoice amount without deducting any cash discounts.

General Journal Entries

The recordings of financial transactions in the general journal, including both the debit and credit sides of each transaction.

Gross Margin Ratio

Gross margin ratio is a financial metric that measures a company's gross profit relative to its sales revenue, indicating the efficiency of production and pricing strategies.