Current Liability |
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| Any debt due within 1 year. One type of current liability arises from charges for the purchase of consumable goods and services. Utility bills, rent, insurance premiums, taxes, medical bills, repair bills, and all similar debts fall into this category. Consider these bills as liabilities (for instance, if you're completing a balance sheet) only if you owe the funds now; i.e., it is an unpaid bill. Another type of current liability is the balances outstanding against established credit lines. For most people, such credit means the use of credit and/or charge cards. Also called: Short Term Liability |
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