What Is the Key Distinction Between Current and Non-Current Liabilities

question 28

Multiple Choice

What is the key distinction between current and non-current liabilities?

• A)Current liabilities always have lower balances than non-current liabilities.
• B)Non-current liabilities always increase over time.
• C)Non-current liabilities are permanent debts of the business.
• D)Current liabilities will be paid off within one year or one operating cycle.

---

Definitions:

Infinite Solutions

A situation where an equation or system of equations has an unlimited number of solutions.

Consistent

In mathematics, it refers to a system of equations that has at least one solution; in a general context, it means steady or continually the same.

Graphical Method

A technique for solving mathematical problems by drawing graphs to visualize relationships between variables.

Equations

Mathematical statements that assert the equality of two expressions, typically including one or more variables.