Current (Short-Term) Liabilities: What Your Business Owes Right Now

Описание: Short & Simple Definition: Any money a company owes that is due to be paid within the next year.

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Real-World Example: A catering business has to pay its weekly wages, its monthly rent, and the bill for the fresh food it just bought. These are all current liabilities because they are short-term debts that need to be paid soon.

Deeper Dive: Current liabilities are a company's short-term financial obligations that must be settled within one year. They are a critical measure of a company's short-term financial health. Common examples include accounts payable (money owed to suppliers), wages payable, and short-term loans. The relationship between current liabilities and current assets (what you have versus what you owe in the short-term) is a key indicator of a company's liquidity.

Other terms:
Short-term liabilities
Current obligations
Short-term debts