what is a current liability
A current liability is an obligation that is payable within one year. The cluster of liabilities comprising current liabilities is closely watched, for a business must have sufficient liquidity to ensure that they can be paid off when due.he aggregate amount of current liabilities is a key component of several measures of the short-term liquidity of a business, including: 1  Current ratio. 2  This is current assets divided by current liabilities. 3  Quick ratio. 4  This is current assets minus inventory, divided by current liabilities. 5  Cash ratio.