Current Liabilities

What are Current Liabilities?

• Current Liabilities are obligations a company must pay within one year (or within its operating cycle, whichever is longer).

• They represent short-term debts and claims creditors have against the company.

• They appear on the balance sheet as current liabilities underneath non-current liabilities.

A full Consolidated list of Current Liabilities

• Trade & Operating Liabilities

• Financial Liabilities

• Taxes & Government Liabilities

• Deferred/Unearned Items

• Other Liabilities

What are examples of Trade & Operating Liabilities - (Current Liabilities)

• Accounts Payable (Creditors)

• Accrued Expenses

• Accrued Wages

• Accrued Rent

• Accrued Interest

• Accrued Utilities

What are examples of Financial Liabilities? - (Current Liabilities)

• Short-term loans

• Bank overdraft

• Current portion of long-term debt

• Notes Payable (short-term)

What are examples of Taxes & Government Liabilities? - (Current Liabilities)

• Income tax Payable

• Sales tax Payable

• Payroll tax Payable

• GST/VAT Payable

What are examples of Deferred/Unearned Items? -(Current Liabilities)

• Unearned revenue

• Customer advances

What are examples of Other Current Liabilities?

• Dividends Payable

• Security deposits owed to customers

• Short-term obligations to subsidiaries/related parties

• Warranty obligations (within a year)

Summary of Current Liabilities

• Current Liabilities = Debts due within one year

• They include accounts payable, accrued expenses, short-term loans, taxes payable, unearned revenue, and the current portion of long-term debt.