Current liabilities is a category of liabilities on the balance sheet. The category 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.
Current Liabilities Items
Examples of items considered current liabilities include accounts payable, wages payable, short-term debt or Notes Payable, and current portion of long-term debt.
Current Ratio, Quick Ratio
Two key liquidity ratios, the current ratio and the quick ratio, are calculated using current liabilities.