Final answer:
Current liabilities are obligations or debts that are expected to be settled within one year or the normal operating cycle of a business, whichever is longer. Some examples of current liabilities include accounts payable, accrued expenses, short-term loans, and income tax payable.
Step-by-step explanation:
Current liabilities are obligations or debts that are expected to be settled within one year or the normal operating cycle of a business, whichever is longer. According to revised Schedule III, some examples of current liabilities include:
- Accounts Payable: Amounts owed to suppliers or vendors for goods or services received but not yet paid for.
- Accrued Expenses: Expenses that have been incurred but not yet paid, such as salaries payable or interest payable.
- Short-term Loans: Loans that are due within one year or the normal operating cycle of a business.
- Income Tax Payable: Taxes owed to the government for the current year.