Current Liabilities
What are Current Liabilities?
Current liabilities are those that must be paid within the coming 12-month period.
How it Works
A business will have liabilities.
![cl2](https://seeaccountingnow.online/wp-content/uploads/2021/04/cl2.jpg)
Liability accounts show money the business owes to others.
![cl3](https://seeaccountingnow.online/wp-content/uploads/2021/04/cl3.jpg)
They are divided into current liabilities and non-current liabilities.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cl4.jpg)
Current liabilities are those that must be paid in the coming 12-month period.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cl5.jpg)
Accounts payable is a current liability.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cl6.jpg)
Suppliers usually require payment within 3 months but certainly within 12 months.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cl7.jpg)
Accrued expenses are also current liabilities.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cl8.jpg)
Accrued expenses are expenses incurred during the accounting period but are yet to be invoiced.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cl9.jpg)
Regardless of the expense, the bill will need to be paid within the coming 12-month period.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/cl10.jpg)
A business may also have long term debt.
![cl11](https://seeaccountingnow.online/wp-content/uploads/2021/04/cl11.jpg)
The portion due in the coming 12 months is also categorized as a current liability.
![cl12](https://seeaccountingnow.online/wp-content/uploads/2021/04/cl12.jpg)
© R.J. Hickman 2020