Current liability
In accounting, current liabilities are considered debts of the business that are due within the fiscal year.
For example accounts payable for goods, services or supplies that were purchased for use in the operation of the business and payable within a normal period of time would be current liabilities.
Bonds, mortages and loans that are payable over a term exceeding one year would be fixed liabilities. However the payments due in the current fiscal year could be considered current liabilities if the amount were material.
The proper classification of liabilities is essential when considering a true picture of an organization's fiscal health.
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