Markets
Platforms
Accounts
Investors
Partner Programs
Institutions
Contests
loyalty
Trading Tools
Resources
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.
Start Your Journey
Put your knowledge into action by opening an XS trading account today
Register to our Newsletter to always be updated of our latest news!
