ECONOMICS

Detailed explanation-1: -Short-term debt, also called current liabilities, is a firm’s financial obligations that are expected to be paid off within a year. Common types of short-term debt include short-term bank loans, accounts payable, wages, lease payments, and income taxes payable.

Detailed explanation-2: -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-3: -Short-term debt is any debt that is due within one year, while long-term debt is any debt that is due after one year. This repayment period can have a big impact on the interest rate that you’ll pay. Short-term debt typically has a higher interest rate than long-term debt, because it’s seen as a higher risk by lenders.

Detailed explanation-4: -Common examples of short-term debt include accounts payable, current taxes due for payment, short-term loans, salaries, and wages due to employees, and lease payments.

Detailed explanation-5: -A short term loan is a type of loan that is obtained to support a temporary personal or business capital need. As it is a type of credit, it involves repaying the principle amount with interest by a given due date, which is usually within a year from getting the loan.