Finance Interview Technical Practice Test 2025 - Free Finance Interview Practice Questions and Study Guide

Question: 1 / 400

What would be classified as a non-current liability?

Accounts payable

Short-term loans

Long-term debt

Long-term debt is classified as a non-current liability because it represents obligations that a company expects to settle more than one year from the balance sheet date. Non-current liabilities signify resources that are not expected to be settled in the next year, which distinguishes them from current liabilities, such as accounts payable, short-term loans, and accrued expenses. Long-term debt often includes items such as bonds payable or long-term lease obligations and reflects a company's strategy to finance itself over a longer time horizon, thus impacting its long-term financial outlook and capital structure. This classification is essential for investors and creditors as it provides insight into the company's long-term financial health and obligations.

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Accrued expenses

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