Question

Which of the following is a non-current liability?

• A. Mortgage loan
• B. Bank overdraft
• C. Outstanding salaries
• D. Prepaid expense

Hint:

Liabilities due beyond one year = Non-current liabilities.

Answer 1

The Correct Option is A

Step 1: Understanding non-current liabilities.
Non-current liabilities are obligations payable after more than one year.
Step 2: Option analysis.
- (A) Mortgage loan: Correct, since it is a long-term liability.
- (B) Bank overdraft: Wrong, it is a current liability.
- (C) Outstanding salaries: Wrong, current liability.
- (D) Prepaid expense: Wrong, this is an asset, not liability.
Step 3: Conclusion.
Mortgage loan is the non-current liability.