Current liabilities is a debt within one year. Some examples of current liabilities that appear on the balance sheet include accounts payable, payroll liabilities, accrued expenses, short-term promissory notes payable, income tax and interest payable accrued interest, payroll taxes, utilities, rent and other debts. They can be settled by current assets or by replacing the current liabilities for the other.
The calculation of current liabilities in Excel
They say the company ABC has current liabilities, which include the following:
- Accounts payable – $38,000
- Wages – $90,000
- Accrued expenses – $67,000
- Rental price – $240,000
- Credits – 50,000 $
- Other debts – $56,000
Type “current liabilities” in cell A1, then “accounts payable” “accrued payroll”, “accrued expenses”, “Rent,” “loans” and “debt” in cells A2-A7. In cell B1, enter the year for which the calculation of the total amount of current liabilities. Enter dollar amounts in column B next to their category (38,000 in B2, 90 000 in B3, etc.).
To calculate the amount of total current liabilities, the mark-cell A7 as “total current liabilities”, select cell B7, and type “=sum(B2:B7)” in the formula bar. This will add to the current stated obligations and give you a total amount for the year.
You can do it for a few years and compare whether the company’s liabilities increase or decrease.
(For associated reading, see: a modern Basis of liability.)