Non Current Liabilities

Non-Current liabilities are the obligations or non-current liabilities on the balance sheet of a company, also known as long-term debts or liabilities. These obligations are commonly not due within twelve months. It is just opposite to current liabilities, where the debts are short-term and its maturing is with twelve months.

Most of the businesses, compare Non-current liabilities amount with cash flow, to understand if an organization has enough financial resources to meet the financial obligations over a long-term. Most of the moneylenders invest on short-term liquidity and the current liabilities amount, however, the long-term investors check non current liabilities to estimate whether they can invest money in the company. If the company’s cash flow is more, it indicates that the company can support more debt without being in default.

Non-Current Liabilities Examples:

The Non-current liabilities are listed individually away from current liabilities in a company’s balance sheet. Mentioned below are few non-current liabilities lists:

  • Long-term debt payable
  • Long-term bonds payable
  • Long-term loans payable
  • Deferred tax liabilities
  • Long-term lease obligations
  • Pension benefit obligations
  • Deferred tax liabilities
  • Long-term lease obligations
  • Pension benefit obligations
Non-Current Liabilities

Non-Current liabilities List:

  • Bonds payable
  • Long-term notes payable
  • Deferred tax liabilities
  • Mortgage payable
  • Capital lease

The above mentioned is the concept, that is elucidated in detail about ‘What are Non-Current Liabilities?’ for the Commerce students. To know more, stay tuned to BYJU’S.

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