Distinguish between current liabilities and long-term liabilities.

A. Current liabilities consist of only accounts payable to vendors and suppliers that fall due within the coming year (or within one operating cycle, if longer than a year). Long-term liabilities fall due beyond 1 year from the balance sheet date, or beyond the operating cycle (if longer than 1 year).

B. Current liabilities are obligations that fall due within the coming year (or within one operating cycle, if longer than a year). Long-term liabilities fall due beyond 1 year from the balance sheet date, or beyond the operating cycle (if longer than 1 year).

C. Current liabilities are obligations that fall due within between 1 and 3 years. Long-term liabilities fall due beyond 3 years from the balance sheet date.

D. Current liabilities consist of only bank loans that fall due within the coming year (or within one operating cycle, if longer than a year). Long-term liabilities are only bank loans that fall due beyond 1 year from the balance sheet date, or beyond the operating cycle (if longer than 1 year).