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Current Liabilities |
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Current liabilities Current Liabilities On a balance sheet, any liability expected to be paid off in one year or less. Common examples of current liabilities are short-term bills and accounts payable. Current Liabilities What Does Current Liabilities Mean? A company's debts or obligations payable within one year. Current liabilities appear on the company's balance sheet and include shortterm debt, accounts payable, accrued liabilities, and other debts. Investopedia explains Current Liabilities Essentially, these are bills that are due to creditors and suppliers within a short time. Normally, companies withdraw cash or liquidate current assets to pay their current liabilities. Analysts and creditors often use the current ratio, (which divides current assets by current liabilities), or the quick ratio (which divides current assets minus inventories by current liabilities) to discern whether a company has the ability to pay off its current liabilities. Related Terms: Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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