Current liabilities are obligations or debts that a company expects to settle within one year or the normal operating cycle of the business, whichever is longer. They represent the company’s short-term financial obligations that are due in the near future. For example, Accounts Payable, Short-Term Borrowings like bank overdrafts, Accrued Expenses, Income Taxes Payable, Dividends Payable, Unearned Revenue, Current Portion of Long-Term Debt, etc.
