Definition

Debts or other obligations (loans) coming due within a year.

Calculation rule

Current liabilities =	Accounts payable
	+ Short term debt
	+ Current portion of Long term debt
	+ Other current liabilities

Comment

The relationship between current assets and current liabilities tends to show the business's ability to pay off its debt during the normal course of operations.

Reference

   Account payable
   Current ratio
   Operating working capital
   Quick ratio
   Working capital