alleryStart learning →Lender gave a 15-month grace period by year-end to fix a covenant breach. Class?
ADeferred income
BNon-current liability
CCurrent liability
DContingent liability
Answer & Solution
Correct answer: B. Non-current liability
A grace period ending at least twelve months after the period, agreed by year-end, stops the lender demanding repayment, so the liability is non-current.
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