Current liabilities are those liabilities of the business that are to be settled in cash within the economical year or the operating cycle of a given firm, whichever period is longer. In other words, current liabilities are compulsion that will be settled by current assets or by the creation of new current liabilities.
Current liability is that entry of the balance sheet that has to be paid by the company to any third party within a year. It is the responsibility of the company to pay current liabilities within current accounting year. In other words a current
Debt to Equity Ratio: Definition: Debt-to-Equity ratio indicates the relationship between the external equities or outsiders funds and the internal equities or shareholders funds. It is also known as external internal equity ratio. It is determined to ascertain soundness of the long term financial