Discuss the different types of non-current liabilities.
Chapter1: Financial Statements And Business Decisions
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Discuss the different types of non-current liabilities.
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Non-current liabilities, or long-term debts, are payments that become due after 12 months. Since these obligations aren't due for more than a year, they can come with certain challenges, such as a customer no longer having the finances or the company going out of business. Therefore , non-current debts require steady moderation to ensure that an entity can make its collections successfully after a long period. Too many long-term liabilities can hinder a company's immediate cash flow and impact the appearance of its financial reports.
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