Current liabilities is a category of liabilities on the balance sheet. The category also consists of debts and other financial obligations expected to be paid or settled within one year or within one normal operating cycle of the business (whichever is longer). The balance sheet also includes a category for long-term liabilities.
Examples of Items
Examples of items considered this type of liability include the following:
- Accounts payable
- Wages payable
- Short-term debt
- Notes Payable
- Current portion of long-term debt
Current Ratio, Quick Ratio
You need to have key liquidity ratios, the current ratio and the quick ratio to calculate this liability.
If you want to find out more about how you could utilize your unit economics to add more value to your organization, then click here to download the Know Your Economics Worksheet.
Access your Strategic Pricing Model Execution Plan in SCFO Lab. The step-by-step plan to set your prices to maximize profits.
Click here to access your Execution Plan. Not a Lab Member?