key term - Current liabilities

Definition

Current liabilities are financial obligations that a company is expected to pay within one year or within its normal operating cycle, whichever is longer. These include debts such as accounts payable, short-term loans, and accrued expenses.

Related terms

Accounts Payable:

Money owed by a company to its suppliers or creditors for goods or services received that have not yet been paid for.

Short: term Loans - Loans that are scheduled to be repaid in less than a year from the date of the loan agreement.

Accrued Expenses:

Expenses that have been incurred (i.e., benefits received) but not yet paid for, often including wages payable, interest payable, and taxes payable