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

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

• A. Mortgage loan
• B. Credit card balance due this month
• C. Utility bill
• D. Wages payable

Answer: (A)

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.