Current liabilities vs non-current liabilities (comparison)
Current liabilities are the debts that a business expects to pay within 12 months while non-current liabilities are longer term.
Both current and non-current liabilities are reported on the balance sheet. Non-current liabilities may also be called long-term liabilities.
Examples of current liabilities
Current liabilities examples are short-term debt, accounts payable (money owed to suppliers), wages owed, income and sales taxes owed, and pre-sold goods and services.
Examples of non-current liabilities
Non-current liabilities examples are long-term loans and leases, lines of credit, and deferred tax liabilities.
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.
