Current liabilities are cash and other resources that are expected to be sold,collected or used within one year or the company's operating cycle whichever is longer.

Current Liabilities

Obligations or debts that a company must pay within a year.

Operating Cycle

The operating cycle is the duration of time it takes for a company to purchase inventory, sell it, and convert the sales into cash.

Cash

A form of liquid asset that represents immediate purchasing power and can be used for transactions.