What are 'non-current liabilities'?

Non-current liabilities refer to obligations that a company is expected to settle beyond one year. This includes long-term borrowings, bonds payable, and other financial obligations that are not due within the next twelve months. Understanding non-current liabilities is crucial for financial statement analysis, as they indicate a company's long-term financial health and its ability to meet future obligations.

These liabilities play a significant role in a company's capital structure and can include items like mortgages, long-term leases, and deferred tax liabilities. Proper classification of liabilities on the balance sheet helps stakeholders assess the risk and liquidity position of the business.

The other choices focus on aspects that relate to short-term financial obligations or expenses rather than the long-term nature of non-current liabilities. For example, liabilities that can be settled within the accounting period would be classified as current liabilities, and thus are distinctly different from non-current liabilities.