Respuesta :
Any debt that must be repaid within the next year is recorded on the balance sheet as: a current liability.
What is current liability?
Current liabilities are a company's short-term financial obligations that are due within one year or within a normal operating cycle. An operating cycle, also referred to as the cash conversion cycle, is the time it takes a company to purchase inventory and convert it to cash from sales.
It is one the company expects to pay in the short term using assets noted on the present balance sheet. Typical current liabilities include accounts payable, salaries, taxes and deferred revenues (services or products yet to be delivered but for which money has already been received).
Examples of current liabilities:
- Accounts payable.
- Interest payable.
- Income taxes payable.
- Bills payable.
- Bank account overdrafts
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