What it is: Current liabilities are part of liabilities which due within one year or the normal operating cycle. You can find them in the balance sheet section.Current liabilities reduce financial flexibility because the company will pay
Current Liabilities
Accrued liabilities
Accrued liabilities, such as trade payables, work in reverse with trade receivables. They become a source of liquidity if the company can extend it. But, if many of them are due at the same time, it could drain the company's cash and could lead to
Current portion of long‐term debt
The current portion of long‐term debt represents cash outflows that companies must pay within one year from the balance sheet date. If having no enough money, the company has a high risk of default.Definition of the current portion of long‐term
Accounts Payable: Meaning, Importance, How to Analyze
Analysts are often keen to examine the accounts payable relative to the purchase. It gives them an insight into the company's relationship with its suppliers. Leeway to delay payments is a source of liquidity for the company.Accounts payable
Notes Payable: Definition, Its Reporting
On the balance sheet, you can find the notes payable account in the liabilities section. It may exist in the current liabilities section or, in the non-current liabilities, depending on their maturity.Notes payable definition Notes