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Definition

Current liabilities

Current liabilities are obligations that a company expects to pay from existing current assets within the coming year. Common examples are accounts payable, wages payable, bank loans payable, interest payable, and taxes payable.  Also included as current liabilities are current maturities of long-term obligations- payments to be made within the next year on long-term obligations.

Within the current liabilities section, companies usually list notes payable first, followed by accounts payable. Other items then follow in the order of their magnitude.

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