Current liabilities are debts a company will owe within a 12 month period. For example, if a company receives an invoice from a supplier with payment due within 60 days from receipt, that is a current liability.
Current liabilities may include, but are not limited to, some of the following debts:
- Accounts Payable
- Accrued Payroll
- Payroll Taxes under Federal Insurance Contributions Act (FICA)
- Federal Unemployment Taxes (FUTA)
- State Unemployment Taxes (SUTA)
- Current Portion of Long-Term Debts
- Deferred Revenue
- Accrued Expenses
- Customer Deposits
- Income Taxes Payable
- Credit Cards Payable
Current liabilities are reported first in the liabilities section of the balance sheet. Beneath current liabilities, the company reports long term debts, followed by the equity section.