Question: What is the major difference between a current liability and a long - term liability? A current liability is up - to - date on
What is the major difference between a current liability and a longterm liability?
A current liability is uptodate on payments; however, longtime liabilities are past the due dates.
A current liability is a debt that a company expects to pay within one year, a longterm liability is also a debt, but it is expected to be paid in more than one year. a
A current liability does not have interest expense associated with the debt, whereas a longterm liability does.
A current liability is for debts incurred for current assets, while longterm liabilities are for longterm assets.
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