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.

References

Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.

Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.

Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.

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