Bookkeeping

To calculate current liabilities, you can review your company’s balance sheet and add all of the items from the current liability formula, which will capture all expenses due within 12 months. In the example below, we will demonstrate calculating current liabilities for common items found on a balance sheet. If you want to control your current ratio, you’ll want to control each of these factors. You may already be tracking current assets and current liabilities separately on your balance sheet

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