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Terms Beginning with C
       
       
 

Current Liabilities

Financial Term


Current liabilities are the debts or obligations of a company that are expected to be settled within the next 12 months. These liabilities are typically associated with the company's day-to-day operations and are considered short-term in nature.

Examples of current liabilities include accounts payable, wages payable, taxes payable, rent payable, and short-term loans. These liabilities must be paid off in a timely manner to avoid default and potential legal action.

Current liabilities are an important metric for financial analysts and investors because they provide insight into a company's ability to meet its short-term obligations. By comparing current liabilities to current assets, analysts can assess a company's liquidity and financial strength.

Additionally, current liabilities are used to calculate important financial ratios such as the current ratio and the quick ratio. These ratios measure a company's ability to meet short-term obligations and pay off debt, respectively.

Overall, understanding a company's current liabilities is essential for any investor or financial professional looking to assess the financial health of a company and make informed investment decisions.




   
     

Current Liabilities

Financial Term


Current liabilities are the debts or obligations of a company that are expected to be settled within the next 12 months. These liabilities are typically associated with the company's day-to-day operations and are considered short-term in nature.

Examples of current liabilities include accounts payable, wages payable, taxes payable, rent payable, and short-term loans. These liabilities must be paid off in a timely manner to avoid default and potential legal action.

Current liabilities are an important metric for financial analysts and investors because they provide insight into a company's ability to meet its short-term obligations. By comparing current liabilities to current assets, analysts can assess a company's liquidity and financial strength.

Additionally, current liabilities are used to calculate important financial ratios such as the current ratio and the quick ratio. These ratios measure a company's ability to meet short-term obligations and pay off debt, respectively.

Overall, understanding a company's current liabilities is essential for any investor or financial professional looking to assess the financial health of a company and make informed investment decisions.




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