Write the meaning of current liabilities?

Question: Write the meaning of current liabilities?

Current liabilities refer to the obligations or debts of a business that are expected to be settled or paid within the next accounting period, usually one year. 

These are short-term liabilities that arise from day-to-day operations of a business and are typically settled through the use of current assets such as cash or accounts receivable. 

Examples of current liabilities include accounts payable (owed to suppliers for goods or services), short-term loans, salaries and wages payable, income tax payable, and accrued expenses such as interest and utilities. 

Current liabilities are an important aspect of a company's financial health as they indicate the ability of the business to meet its short-term financial obligations and manage its cash flow effectively.

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