Learn in the textbookClassification of Assets and Liabilities
DefinitionCurrent liabilities (流動負債) are the liability category that groups debts arising from core business transactions such as purchasing and debts due for payment within one year of the balance sheet date.
ExplanationTypical examples are accounts payable (買掛金), the obligation to pay later for goods purchased, along with notes payable, short-term borrowings and other payables. Items that arise outside core business transactions, such as short-term borrowings and other payables, are classified as current or non-current by the one-year rule (1年基準).
AnalogyLike a greengrocer's promise to pay for the vegetables it bought in one lump at the end of the month, a debt that arises in the course of running the business and is paid soon.