Define: Current Liability

Business, Legal & Accounting Glossary

Definition: Current Liability

Quick Summary of Current Liability

Debt, loan, trade credit or other obligation due for payment within one year.


Full Definition of Current Liability

A liability which satisfies any of the following criteria:

  • (a) it is expected to be settled in the entity’s normal operating cycle;
  • (b) it is held primarily for the purpose of being traded;
  • (c) it is due to be settled within 12 months after the balance sheet date.



Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Current Liability. Payroll & Accounting Heaven Ltd. April 07, 2020
Chicago Manual of Style (CMS):
Current Liability. Payroll & Accounting Heaven Ltd. (accessed: April 07, 2020).
American Psychological Association (APA):
Current Liability. Retrieved April 07, 2020, from website:

Definition Sources

Definitions for Current Liability are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th March, 2020