Current Liabilities

Current liabilities

Amount owed for salaries, interest, accounts payable and other debts due within 1 year.

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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