From a liquidity standpoint, it is more desirable for a company to have a current group of Assets exceed current liabilities.
In accounting terms, current liabilities are often understood to mean all of a company's liabilities that are paid in cash within a particular company's fiscal year or business cycle, whichever is longer.
Current liabilities are short-term financial obligations of companies that mature within one year or within normal business cycles. Current liabilities are usually settled with current assets, which are assets that are exhausted within one year.
Current liabilities are reported on the balance sheet and settled from the income from the company's operations. Examples of current liabilities are accounts payable, current liabilities, accrued expenses, and accrued dividends.
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