Current Liabilities

Current liabilities are obligations that the company is to pay within the coming year or its operating cycle, whichever is longer. Common examples are:

• Accounts Payable,
• Wages Payable,
• Bank Loans Payable,
• Interest Payable,
• Taxes payable.

Also included as current liabilities are current maturities of long-term obligations—payments to be made within the next year on long-term obligations. Within the current liabilities section, companies usually list notes payable first, followed by accounts payable. Other items then follow in the order of their magnitude.

>> Read Current Assets.

Related Topics

Assets

Current Assets

Fixed Assets

Liabilities

Types of Accounts

More Interest

Long Term Liabilities

Expenses

Revenue Accounts

Drawing Account

Owner’s Equity