Read Along With the VideoTranscript
By now, you're probably sick of current versus non-current liabilities and assets. So this one is going to be super quick. For non-current, we're looking at anything that is greater than one year, and that's true 98% of the time. If you wanna know what's true the other 2% of the time, go back and watch the non-current assets or the current assets video. That'll tell you all you need to know. So there are basically two main forms of non-current liabilities, and those are bonds, bonds payable, and notes payable. I'm telling you, it's really straightforward, and both of these are promises to pay money back later.
So with a bond payable and a note payable, we have promised we will pay back the money later. And so most of the time it's gonna be something like you'll see on the balance sheet, bond payable, maturity date of like 2030. And so you know that that one is greater than a year, so it's long term. Or let's say non-current, same thing. So that's a non-current liability. So this again, just like in the current liabilities, the key point here is the maturity date. You need to look at the maturity date and see is it within a year or is it longer than a year?
Same for note. Note payable, and it's not due until, let's say, 2020. That makes it a non-current liability as well.