Final answer:
Current liabilities can be satisfied by paying them off with cash, converting them into long-term liabilities, settling them with assets, or less commonly, by issuing equity shares to raise capital.
Step-by-step explanation:
Current liabilities are debts or obligations due within one year that are satisfied in several manners. The most common way to satisfy current liabilities is by paying them off with cash that the firm has on hand or generates from operations. Alternatively, a company can convert short-term liabilities into long-term liabilities, restructuring the debt to have a longer maturity period. Another option is to settle them with assets, where the company might sell off assets to cover the debt. Lastly, while it's less common for current liabilities, a firm may choose to issue equity shares to raise capital that can be used to pay off debt.
however, this method entails selling ownership in the company and is typically geared towards generating capital for long-term investments or growth rather than for settling short-term debts. Current liabilities are debts or obligations that a company is expected to pay off within a year or the operating cycle, whichever is longer. These can include items such as accounts payable, short-term loans, and accrued expenses. Current liabilities are typically satisfied by paying them off with cash or settling them with assets. For example, a company may use its available cash or liquidate some of its short-term investments to pay off its current liabilities.