Which among the following is a non-current liability? Operating cycle…

The correct answer is option 4- CD.

	Operating cycle in months	Expected period when payment is made	Liability	Reason
A	9	12	Current	The expected period of payment is more than operating cycle but less than 12 months so it is a current liability.
B	11	12	Current	The expected period of payment is more than operating cycle but less than 12 months so it is a current liability.
C	11	13	Non-current	The expected period of payment is more than operating cycle and 12 months so it is a non current liability.
D	18	20	Non-current	The expected period of payment is more than operating cycle and 12 months so it is a non current liability.
E	18	16	Current	The expected period of payment is less than operating cycle so it is a current liability.
F	10	12	Current	The expected period of payment is more than operating cycle but less than 12 months so it is a current liability.

* A liability is treated as current if payment is made within operating cycle or 12 months.

* A liability is treated as non current if payment is made within 12 months if operating cycle is less than 12 months.