PRC-1 · Chapter 1 · Question 78 of 100
Which of the following items found in a trial balance would definitely be classified as a 'Non-Current Liability' in the statement of financial position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) A bank loan that is fully repayable in five years.
Explanation
Obligations that are not expected to be settled within 12 months of the reporting date are classified as non-current liabilities. A 5-year bank loan fits this definition perfectly.
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