What are current liabilities?
Current liabilities are obligations on a company’s balance sheet that are due to be paid within one year (or one operating cycle). Common current liabilities include accounts payable, accrued expenses, short-term debt, the current portion of long-term debt, deferred revenue and tax payable.
Current liabilities, together with current assets, determine working capital (Current Assets − Current Liabilities) and liquidity. Healthy startups maintain positive working capital and conservative current-liability levels relative to operating cash flow.