BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Short Term Liability: Any liability which can be repaid within a period of one year is known as short term liability.

Detailed explanation-2: -Answers. The debts which are to be repaid within a short period (year or less) are known as Current liabilities. Current liabilities are a company’s debts or obligations that are due within one year or within a normal operating cycle.

Detailed explanation-3: -Liabilities can be classified into three categories: current, non-current and contingent.

Detailed explanation-4: -Current liabilities (short-term liabilities) Current liabilities (also called short-term liabilities) are debts a company must pay within a normal operating cycle, usually less than 12 months (as opposed to long-term liabilities, which are payable beyond 12 months). Paying off current liabilities is mandatory.

Detailed explanation-5: -Some examples of current liabilities that appear on the balance sheet include accounts payable, payroll due, payroll taxes, accrued expenses, short-term notes payable, income taxes, interest payable, accrued interest, utilities, rental fees, and other short-term debts.