PRC-1 · Chapter 10 · Question 5 of 100
Which of the following items is usually classified as a non-current liability in the statement of financial position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Bank loan (payable in 5 years)
Explanation
A long-term bank loan is a non-current liability as it is due after more than 12 months. Bank overdrafts, tax payable, and accrued expenses are current liabilities.
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