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Detailed explanation-1: -What Are Current Liabilities? Current liabilities are a company’s short-term financial obligations that are due within one year or within a normal operating cycle. An operating cycle, also referred to as the cash conversion cycle, is the time it takes a company to purchase inventory and convert it to cash from sales.

Detailed explanation-2: -Key Takeaways 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-3: -Definition and Examples of Current Liabilities Current liabilities are also called “short-term liabilities.” They are debts that must be paid within the next year, including: Short-term debt, such as a line of credit.

Detailed explanation-4: -Explanation: Current liabilities are obligations that are due and must be paid within one year or less. Examples of common current liabilities are accounts payable, wages payable, taxes payable, and notes payable. These liabilities are listed on the balance sheet after the assets section.