Other current liabilities,
Definition of Other current liabilities:
A companys record of payments for debt obligations. An example would be dividend payouts.
Other current liabilities, in financial accounting, are categories of short-term debt that are lumped together on the balance sheet. The term "current liabilities" refers to items of short-term debt that a firm must pay within 12 months. To that, companies add the word "other" to describe those current liabilities that are not significant enough to identify separately on their own lines in financial statements, so they are grouped together as "other current liabilities." Other current liabilities are the opposite of other current assets.
Before you can understand the concept of other current liabilities, you must know what current liabilities means.
Amounts due to be paid to creditors within twelve months.
How to use Other current liabilities in a sentence?
- It accomplishes this to the extent that it serves to bring down wage rates and prices and thus the dollar amount of current liabilities, which fall as the result of smaller outlays being made and thus smaller bills having to be paid.
- The term, other current liabilities is a line item on the balance sheet.
- The word "other" means that these current liabilities are not significant enough to occupy their own line.
- They are grouped together for the sake of simplicity and readability.
Meaning of Other current liabilities & Other current liabilities Definition