What is a Current Liabilities (Short-Term Liabilities)?

Current liabilities are debts a business must pay within a year.

For example, a retail store's current liabilities at year-end include $18,000 owed to suppliers, $6,000 in accrued wages, and a $12,000 portion of a term loan due in the next 12 months — totalling $36,000 that must be settled in the coming year.

Built for Business. Backed by Experience.