Current and Non-Current Liabilities Are Categorised Based On

question 26

Multiple Choice

Current and non-current liabilities are categorised based on:

• A) to whom the liability is owed.
• B) when the liability is due for payment.
• C) whether the liability is secured or unsecured.
• D) the size of the liability.

---

Definitions:

Income

Funds acquired regularly from labor or investment returns.

At-risk Amount

The maximum value taxpayers are at risk of losing in an investment, affecting the deductible loss limit in tax declarations.

Ordinary Loss

A loss derived from normal business operations or transactions that is not classified as a capital loss.

Passive Activity

Passive activity involves business or trade activities in which the person is not actively involved, affecting how losses and income are treated for tax purposes.