Current Liabilities

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Description of Current Liabilities. Explanation.


Definition Current Liabilities. Description.

Current Liabilities are obligations which are expected to be paid or performed within one year or during the normal operating cycle of the business, whichever is longer.

They are listed on the Balance Sheet and include items such as: accounts payable, short term debt, taxes payable, dividends payable, accrued interest, salaries payable.

Bonds, mortgages and loans that are payable over a term exceeding one year are normally fixed liabilities. However the payments due in the current fiscal year could be considered current liabilities if the amounts are material.

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