The financial accounting term current liabilities are generally defined as any debts that must be paid within one year or one operating cycle, whichever is longer. Current liabilities are a subcategory of liabilities, which appear on a company's balance sheet.
Typically, current liabilities appear on the balance sheet, and include items such as accounts payable, income taxes payable, accrued liabilities, short term debt, and the current portion of long term debt.
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. For example, cash (a current asset), may be used to pay a trade partner (accounts payable).