Current liabilities are debts that can reasonably be expected to be paid:(1) from existing current assets or through the creation of other current liabilities and(2) within one year or the operating cycle，whichever is longer.Debts that don't meet both criteria are classified as long-term liabilities.In most enterprises，current liabilities are paid within one year out of current assets，rather than through the creation of other liabilities.

Enterprises must be extremely careful about the relationship of current liabilities to current assets.This relationship is critical in evaluating enterprise's liquidity，or short-term debt-paying ability.An enterprise that has more current liabilities than current assets is usually the subject of some concern because the enterprise may not be able to meet its current obligations when they become due.

Current liabilities include notes payable，accounts payable，unearned revenues，short-term loan，and accrued liabilities such as taxes，salaries and wages，and interest payable.