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Explanation of Total Current Liabilities
Also called Current Liabilities and listed on the Balance Sheet, the Total Current Liabilities are the claims to the company’s assets that are due within one year or the cycle of operations. Total Current Liabilities usually make up several line items, such as Accounts Payable, Notes Payable, Current Maturities, and Accrued Liabilities.
Importance of Total Current Liabilities
Total Current Liabilities as a whole are important, but each of the line items that make up the Total Current Liabilities are also important. Some performance ratios that require Total Current Liabilities are the Current Ratio and Quick Ratio.