Current Liabilities

Current Liabilities

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:

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.

current liabilities

Strategic CFO Lab Member Extra

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?

Click here to learn more about SCFO Labs

current liabilities

See Also:

Balance Sheet
Current Assets
Fixed Assets
Fixed Assets – NonCurrent Assets

, , , , , , , , , ,

One Response to Current Liabilities

  1. laura June 4, 2015 at 5:36 pm #

    Should AP accruals be included in the DPO.

    Thanks, in advance!

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.