Noncurrent Liabilities

Dictionary Says

Definition of 'Noncurrent Liabilities'


A business's long-term financial obligations that are not due within the present accounting year. Examples of noncurrent liabilities include long-term borrowing, bonds payable and long-term lease obligations. Any noncurrent liabilities will be listed on the company's balance sheet.

Investopedia Says

Investopedia explains 'Noncurrent Liabilities'


Investors are interested in a company's noncurrent liabilities because they want to see that it does not have too much debt relative to its cash flow.

The other category of liability that companies incur is called a current liability. Current liabilities are those due within the present accounting year, such as accounts payable, customer advances, taxes payable and the payments due that year on a long-term loan.

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