Current Liabilities are financial obligations that a company is expected to pay off within one year or within its normal operating cycle, whichever is longer. They include the following:Accounts payable: This represents money owed to suppliers for goods or services purchased on credit but not yet paid for.Short-term debt or Notes payable: These are repayments of debt that will occur within one year.Current portion of long-term debt: This is the portion of long-term debt that must be paid within the next year.Accrued expenses: These are expenses that have been incurred but not yet paid. Examples include wages payable, taxes payable, and interest payable.Deferred or unearned revenue: those are revenue that has been received for products that have not yet been delivered.
Learn Current Liabilities with interactive examples and practice exercises in our Balance Sheet module.
This interactive learning module helps you understand Current Liabilities through hands-on practice and real-world examples.