Current liabilities
In one sentenceLiabilities that must be settled within a year of the statement date, such as accounts payable, tax due and the current portion of loans.
Simply put
These are what you will be asked to pay soon, within the next twelve months. That is why they are always compared with current assets, to see whether what you have is enough to pay them.
If you have a long-term loan, the part that falls due within the next year is moved to current liabilities, and the rest stays long-term.
Worked example
An electronics store on the balance sheet date.
Accounts payable to suppliers60,000 SAR
VAT payable15,000 SAR
Loan installments due within the next year25,000 SAR
Total current liabilities (60,000 + 15,000 + 25,000)100,000 SAR
Don't confuse it with
Long-term liabilitiesWhat is settled more than a year after the statement date.