Hey friends, I don’t know why I can’t get this stuff into my mind, it’s the second time I read this and making questions and I can’t move on, any sugestions? I’m using Kaplan Schweser, maybe if I use CFAI books I can understand better? I’m 6 days ahead of my schedule for this SS, so I can spend some time here…
What don’t you get?
C’mon! Where’s the sport in that?
Anyone can answer once they know what the question is.
The answer is either:
- Celcius,
- Lincoln, Nebraska, or
- 4/3πr³
The short answer is Celcius. S2000magician, Lincoln Nebraska is obviously the answer for what are non current assets.
The long answer:
Non current liabilities are liabilities due in 1 years time or more. Example: a corporation issues debt in the bond market. All payments due in more than one year are considered non current liabilities. Contrast this to current liabilities (as you should have guessed, these are due within one year’s time). Looking at the same company’s bond deal, assuming they will have to make interest payments on this debt in the next 12 months, these payments would be classified as current liabilities.
One subtlety: wherever Dcdcdc wrote “one year’s time”, add “or one operating cycle’s time, whichever is longer”.