Current liabilities are short-term liabilities whose liquidation is reasonably expected to require the use of current assets or the creation of other current liabilities.

Question

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Current liabilities are obligations that are expected to be settled within one year or the normal operating cycle of the business, whichever is longer. These may include accounts payable, accrued expenses, short-term loans, and other obligations that require the use of current assets or the creation of other current liabilities to be settled.

Current Liabilities Are Short-Term Liabilities Whose Liquidation Is Reasonably Expected