Noncurrent Liabilities

AAA

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 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.

RELATED TERMS
  1. Noncurrent Assets

    A company's long-term investments, in the case that the full ...
  2. Accrued Liability

    An accounting term for an expense that a business has incurred ...
  3. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  4. Liability

    A company's legal debts or obligations that arise during the ...
  5. Cash Flow

    1. A revenue or expense stream that changes a cash account over ...
  6. Deferred Tax Liability

    An account on a company's balance sheet that is a result of temporary ...
RELATED FAQS
  1. Is it possible for a company to have a positive cash flow and a negative net income?

    This situation may seem a bit counter-intuitive at first, but it is actually quite common and not too difficult to understand. ... Read Full Answer >>
Related Articles
  1. Personal Finance

    Breaking Down The Balance Sheet

    Knowing what the company's financial statements mean will help you to analyze your investments.
  2. Markets

    Operating Cash Flow: Better Than Net Income?

    Differences between accrual accounting and cash flows show why net income is easier to manipulate.
  3. Markets

    Cash: Can A Company Have Too Much?

    Cash is something companies love to have. But if they are not using it there could be problems.
  4. Markets

    What Is A Cash Flow Statement?

    Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports.
  5. Investing

    What's a Debit Note?

    A debit note is a document used by a seller to inform a purchaser of a dollar amount owed. As the name indicates, it is a note from the seller that a debit has been made to the purchaser’s account. ...
  6. Investing

    What's Capitalization?

    Capitalization has different meanings depending on the context.
  7. Investing

    Deferred Tax Liability

    Deferred tax liability is a tax that has been assessed or is due for the current period, but has not yet been paid. The deferral arises because of timing differences between the accrual of the ...
  8. Fundamental Analysis

    The Best 5 Online Accounting Systems For Small Business

    Running a small business can be difficult, but thanks to these online accounting services, taking care of payroll doesn't have to be.
  9. Investing

    Understanding Cost Accounting

    Cost accounting is the method of financially allocating expenses to goods that are manufactured for resale. Cost accounting is also referred to as managerial accounting, because managers use ...
  10. Investing

    What are Prepaid Expenses?

    A prepaid expense is an asset on the balance sheet. Due to accounting principles, expenses are often accrued on the balance sheet and expensed in a later period.

You May Also Like

Hot Definitions
  1. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  2. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  5. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  6. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
Trading Center