Meaning of “current liability” in the English Dictionary

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"current liability" in Business English

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current liabilitynoun [ usually plural ]

uk us

FINANCE a payment that a company must make within 12 months:

If a company has current assets of $4 and current liabilities of $2, then its working capital is $2.
You work out a company's liquidity by dividing its current assets by its current liabilities.

(Definition of “current liability” from the Cambridge Business English Dictionary © Cambridge University Press)