Current liabilities
Financial Accounting glossary · Liabilities & Bonds Payable
Definition
Obligations due within twelve months or the operating cycle.
Current liabilities in plain English
A liability is just something a business owes to someone else. "Current" liabilities are the ones coming due soon — within the next year (or one full business cycle of buying, selling, and collecting, if that's longer). Think of it like the bills piled on your kitchen counter that are due this month: rent, the electric bill, money you owe a supplier. Companies track these separately because they need enough cash on hand to pay them right away, unlike long-term debts that aren't due for years.
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