Current Liabilities - Bookkeeping
2023 - SWR Bookkeeping - Appendix2 - 3 marks
Also called Short term liabilities
Period: Less than a Year. (Long-term liabilities - More than a Year)
The difference between Current Assets and Current Liabilities is Working Capital
Current Ratio = Current Assets / Current Liabilities
Settled using Current Assets
Shows on Balance Sheet Left Side i.e., Capital & Liabilities side.
Examples: Bank Loans, Dividends payable, Bills Payable, Income Tax due, Interest payable on Long term loans, Outstanding expenses, etc.
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