Current Liabilities

Current Liabilities are the company’s liabilities which will come due, or must be paid, within one year. Current liabilities appear on the company's balance sheet and include:

• Short term debt
• Accounts Payable
• Accrued Liabilities and
• Other debts

Analysts and creditors will often use the Current Ratio, (which divides current assets by liabilities), or the Quick Ratio, (which divides current assets minus inventories by current liabilities), to determine whether a company has the ability to pay off its current liabilities.