Current Liabilities

Current Liabilities are generally defined as any debts that must be paid within one year or one operating cycle, whichever is longer. Current liabilities has also been defined as obligations whose liquidation is reasonably expected to require use of existing resources properly classified as current assets, or the creation of other current liabilities.

Typically, current liabilities appear on the balance sheet, and include items such as Accounts Payable, Income Taxes Payable and the current portion of Long Term Debt.