Final answer:
Current liabilities are debts that are expected to be satisfied within one year, representing short-term financial obligations.
Step-by-step explanation:
Current liabilities are debts that are expected to be satisfied within one year. They represent obligations that a company needs to pay back in the short term, typically using assets that are considered to be current. Managing these liabilities is crucial for maintaining a company's liquidity and financial stability. Credit is often utilized for immediate financial needs in various scenarios; for instance, college students might incur debts to manage their expenses with the expectation of repaying these loans once they gain employment after graduation. Similarly, businesses might take on debt to fund projects with future payoffs.