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.
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.