Current Liabilities

Current liabilities are financial obligations a company must settle within a year. This includes debts like unpaid bills, short-term loans, and wages owed to employees. Essentially, they represent the money a business needs to pay off soon. Understanding current liabilities is crucial as they show a company's short-term financial health and ability to meet immediate obligations. If current liabilities exceed current assets, it may indicate financial trouble, as the company might struggle to pay what it owes in the near future.