Current Liabilities

Current liabilities are a company's short-term financial obligations that are due within one year. They include accounts payable, short-term loans, wages, taxes, and other expenses that must be paid within the company's operating cycle. Managing current liabilities is crucial for maintaining a company's liquidity and ensuring it can meet its short-term debts without disrupting operations.

Example

A company’s current liabilities include $100,000 in accounts payable, $50,000 in short-term loans, and $20,000 in wages payable, all due within the next 12 months.