Which of the following would NOT be considered a current liability?

Current liabilities are obligations that a company is expected to settle within one year or within its operating cycle, whichever is longer. These liabilities typically include debts and obligations that require the use of current assets to fulfill.

Long-term loans are classified as non-current liabilities because they are not due for repayment within the next year. They are usually obligations that extend over a longer period, typically beyond one year, making them distinct from current liabilities. The other options—equipment rentals, salaries payable, and interest payable—represent obligations that are expected to be settled in the short term, thus falling under the current liabilities category.

Having a clear definition of current and non-current liabilities is essential for accurate financial reporting and management, as it aids in assessing a company’s short-term liquidity and solvency.