DIAGRAMA LIAB

Current Liabilities

A current liability is an obligation that is payable within one year. The cluster of liabilities comprising current liabilities is closely watched, for a business must have sufficient liquidity to ensure that they can be paid off when due.

Usage in Ratio Measurements

Current Ratio: This is current assets divided by current liabilities.

Quick Ratio: This is current assets minus inventory, divided by current liabilities.

Cash Ratio: This is cash and cash equivalents, divided by current liabilities.

Examples of Current Liabilities

The types of current liability accounts used by a business will vary by industry, applicable regulations, and government requirements

Measures the ability of an organization to pay its bills in the near-term. It is a common measure of the short-term liquidity of a business.

Is used to evaluate whether a business has enough liquid assets that can be converted into cash to pay its bills.

Compares a company's most liquid assets to its current liabilities. The ratio is used to determine whether a business can meet its short-term obligations

Accounts payable. These are the trade payables due to suppliers, usually as evidenced by supplier invoices.

Sales taxes payable. This is the obligation of a business to remit sales taxes to the government that it charged to customers on behalf of the government.

Income taxes payable. This is income taxes owed to the government but not yet paid.

Interest payable. This is interest owed to lenders but not yet paid.

Short-term loans. This is loans that are due on demand or within the next 12 months.

Accrued expenses. These are expenses not yet payable to a third party, but already incurred, such as wages payable.

Customer deposits. These are payments made by customers in advance of the completion of their orders for goods or services.