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Current liabilities are a company's short-term financial obligations that are due within one year. They include accounts payable, short-term loans, wages, taxes, and other expenses that must be paid within the company's operating cycle. Managing current liabilities is crucial for maintaining a company's liquidity and ensuring it can meet its short-term debts without disrupting operations.
A company’s current liabilities include $100,000 in accounts payable, $50,000 in short-term loans, and $20,000 in wages payable, all due within the next 12 months.
• Current liabilities are short-term debts or obligations due within one year.
• Common examples include accounts payable, short-term loans, wages, and taxes.
• Proper management of current liabilities ensures a company can meet its short-term obligations.
Examples include accounts payable, short-term loans, wages payable, and taxes due within the next 12 months.
Proper management ensures a company can meet its short-term obligations without impacting liquidity or disrupting operations.
Current liabilities are due within one year, while long-term liabilities are debts or obligations that extend beyond one year.
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