Current liability

A company's debts or obligations that are due within one year. Current liabilities appear on the company's balance sheet and include short term debt, accounts payable, accrued liabilities and other debts.

Investopedia Says:
Essentially, these are bills that are due to creditors and suppliers within a short period of time. Normally, companies withdraw or cash current assets in order to pay their current liabilities.

Analysts and creditors will often use the current ratio, (which divides current assets by liabilities), or the quick ratio, (which divides current assets minus inventories by current liabilities), to determine whether a company has the ability to pay off its current liabilities.

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Debt incurred by the reporting entity as part of normal operations and that is expected to be repaid during the following 12 months. Examples are Accounts Payable, short-term loans, and that portion of long-term loans due in one year.

Obligation payable within one year or the normal operating cycle of the business. A current liability requires payment out of a current asset or the incurrence of another short-term obligation. Examples are accounts payable, short-term notes payable, accrued expenses payable (e.g., taxes payable, salaries payable). See also Current Asset.

Short-term debts and obligations that must be paid within a period of 1 year.

Debts incurred by the reporting entity as part of normal operations and expected to be repaid during the following twelve months. Examples are accounts payable, short-term loans and that portion of long-term loans due in one year. 135 F. 2d 679, 684. See balance sheet.

In accounting, the term refers to the credit side of the balance sheet where the sum of liabilities and net worth exactly offset assets on the debit side of the balance sheet. Current liabilities as opposed to long-term or fixed liabilities are to be paid within one year or less (such as salaries, taxes due, etc.).

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