Series 79: Current Liabilities

Current Liabilities

A current liability is an obligation the company expects to pay off within 12 months. Typical current liabilities include:

• • Accounts payable. A company’s accounts payable, or “payables,” are amounts the company owes to creditors and suppliers—in other words, the company’s bills. The term is often used to refer to trade payables owed to suppliers on open account.
• • Accrued liabilities. Also known as accrued expenses or simply “accruals,” accrued liabilities are expenses other than accounts payable that have b