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Current Liabilities
(redirected from Short-Term Obligations)

   Also found in: Dictionary/thesaurus 0.01 sec.
Current liabilities
Amount owed for salaries, interest, accounts payable and other debts due within 1 year.

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:
Accounts Payable—AP
Current Assets
Current Ratio
Quick Ratio
Working Capital



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The banking regulator said the three seized banks were facing "serious administrative and managerial problems that resulted in insufficient liquidity to cover their short-term obligations.
Because short-term obligations are usually collected after sales, you can have a higher amount of cash reserve than you would if you would use all your cash for your purchases.
MANAMA: The Bahrain-based Islamic International Rating Agency (IIRA) has assigned its international scale ratings of BBB- / A-3 / stable for foreign currency long-term and short-term obligations and BBB/ A-3/ Stable for local currency long-term and short-term obligations of Jordan Islamic Bank (JIB).
 
 
 
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