Liabilities, Current

Current liabilities are sums due to be paid within 12 months after the reporting period. Most organisations separate liabilities into current and non-current on their balance sheet. Usually, current is within 12 months and non-current is longer than 12 months. As an example, accounts payable invoices from suppliers would be current liabilities, while loans and mortgages that are payable over a term exceeding one year would be non-current or long-term liabilities. The distinction is important as current liabilities are a component of the current ratio, often used to assess the solvency of a company. See also Assets, Current; Balance Sheet, Ratio Analysis and Ratio, Current.

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Discover the world’s largest Glossary of Procurement terms

With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.