Overview
This Current Liabilities Excel Template, is an educational resource that highlights where you would find the account on a balance sheet. It gives you an example balance sheet with current liabilities highlighted. The current liabilities line item is a sub-total that sums up all of the liabilities that are due and expected to be paid to creditors within twelve months. A liability arises when a company undergoes activities that generate an expectation for future cash outflow or use of other economic resources. While the term is defined as payable due within one year, it can also be broadly defined as liabilities payable within one business cycle of the operating company. In the latter case when a business cycle is more than a year's time, a current liability would then be any liability due within the the business cycle. Some examples of typical current liabilities are:
  • Accounts Payable: purchases that have not been paid off
  • Interest Payable: interest on debt that are payable to creditors and lenders
  • Taxes Payable: income taxes payable on the company's earnings before taxes (EBT)
  • Dividends Declared: dividends payable to shareholders who have claim
  • Current maturities of long-term debt: long-term debt that has reached maturity and needs to be repaid
Since the balance sheet items are organized in ascending order of liquidity, the accounts above would always be at the very top of the liability side followed by any long-term liabilities.

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