current liabilities are liabilities

current liabilities are liabilities due repayment in the short term, usually within one year.
Examples are bank overdrafts, account payable for the supply of goods bought on credit and for resale.
Current liabilities are deducted from the current assets, as show in Exhibit 11.2, to give the net current assets or woeking
capital. This figure is very important in accounting since it shows the amount of resources the business has in the form of
readily availabie cash to meet everyday running expenses.