Financial Reporting and Analysis Q106

0. Which of the following is least likely a criterion for classification of a liability as current?

A
It is expected to be settled in the entity’s normal operating cycle.
B
It is expected to be settled in one year after the balance sheet date.
C
The entity has an unconditional right to defer settlement of the liability for at least one year after the balance sheet date.

Answer
Comment
Array

Option : C
Explanation : The criterion for classifying a liability as current is that the entity does not have an unconditional right to defer settlement of the liability for at least one year after the balance sheet date.

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