Which of the following is a non-current liability in personal finance?

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Multiple Choice

Which of the following is a non-current liability in personal finance?

Explanation:
Non-current liabilities are debts that aren’t due within the next year. A mortgage loan is a long-term debt that’s typically paid over many years, so it’s classified as a non-current liability on a personal balance sheet. The portion due within the upcoming year would be the current portion, but the overall loan is considered long-term. In contrast, items like a credit card balance due this month, a utility bill, and wages payable are obligations expected to be settled within a short period, so they are current liabilities.

Non-current liabilities are debts that aren’t due within the next year. A mortgage loan is a long-term debt that’s typically paid over many years, so it’s classified as a non-current liability on a personal balance sheet. The portion due within the upcoming year would be the current portion, but the overall loan is considered long-term.

In contrast, items like a credit card balance due this month, a utility bill, and wages payable are obligations expected to be settled within a short period, so they are current liabilities.

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