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asked 8 months ago
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Current liabilities are the obligations that are expected to be paid off in the operating cycle or one year of the business. It is most likely that current liabilities require cash outflows for settlement. The accounts that are included in current liabilities are accounts payable, notes payable, accrued expenses etc. These are short term obligations. On the other hand, long term liabilities or noncurrent liabilities are obligations that are not expected to paid off in the near future, they are to be paid off after one year. Examples of noncurrent liabilities are bond and loan repayment etc.
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