What is current liabilities in accounting

Current liabilities are short-term financial obligations that a business is required to settle within one year or its normal operating cycle. These are typically paid using current assets like cash. Managing these is essential for maintaining liquidity and financial stability. Common examples include:

• Accounts payable to suppliers
• Short-term loans and bank overdrafts
• Wages and salaries due to employees
• Taxes payable to the government
• Current portion of long-term debt
• Unearned or deferred revenue