Current liabilities definition

Current liabilities are debts, accounts payable, interest due, trade credit, loans, and other obligations that are due and payable within one year. Current liabilities are calculated and identified on a business' balance sheet.

If, for example, a business has an outstanding loan of $500,000 and $100,000 of that amount is due for payment within the next twelve months, $100,000 would be classified as a current liability.

Current liabilities as a total is information that is used as one measure of the financial condition of a company, especially in association with current assets to calculate the level of working capital.