Difference Between Current Liabilities And Non Current Liabilities

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.