Current Liabilities
Current Liabilities (Definition)
Current liabilities are a companys debts or obligations that are due within one year or within a normal operating cycle.
Key aspects of current liabilities include:
- Include accounts payable, short-term debt, accrued liabilities, and other debts due within a year
- Represent short-term financial obligations on a companys balance sheet
- Used to assess a companys short-term liquidity and ability to meet immediate obligations
- Important for calculating working capital
Effective management of current Liabilities is essential for maintaining a companys liquidity and operational capabilities.