“…a current liability is a debt that a company reasonably expects to pay (1) from existing current assets or through the creation of other current liabilities, and (2) within one year or the operating cycle, whichever is longer” (Kimmel, Weygandt, & Kieso, 2007, p. 474). Other debts that do not meet these criteria are considered long-term liabilities. The major types of current liabilities include notes payable, accounts payable, unearned revenues, and accrued liabilities. Accrued liabilities include taxes, wages, salaries, and interest...
“…a current liability is a debt that a company reasonably