CURRENT LIABILITIES
Current liabilities are your debts which need to be settled within the year of current accounting period. Some examples of current liabilities (CL) include: Account payables (creditors), Short-term bank loan, accrued expenses, prepaid incomes.
NON-CURRENT LIABILITIES
Non-current or long-term liabilities are debts of the business that are due beyond one year or the normal operating cycle of the business. Non-current liabilities are your debts which are due in more than one year from the current accounting period. Examples of Non-Current Liabilities (NCL): 5 year loans, 10 year loans, debentures.
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