Current Liabilities

Definition: Current Liabilities are obligations that are expected to be settled within one year or one operating cycle, whichever is longer. They are listed on…

Scope:ModerateDifficulty:Beginner

Current Liabilities are obligations that are expected to be settled within one year or one operating cycle, whichever is longer. They are listed on the balance sheet and typically include: Accounts Payable, Short-Term Notes Payable, Current Portion of Long-Term Debt, Accrued Expenses (wages, interest, taxes), Unearned/Deferred Revenue, Income Taxes Payable, and Dividends Payable. Current Liabilities is the denominator of the Current Ratio, Quick Ratio, Cash Ratio, and Operating Cash Flow Ratio.