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Unformatted text preview: Cur rent Liabilities are the obligations that a company reasonably expects to liquidate either through the use of current assets or the creation of other current liabilities this includes: Payables Unearned revenues Other liabilities whose liquidation will take place within the operating cycle Sometimes a liability that is payable within the next year is NOT included in the current liabilities because the company expects to either refinance the debt through another long-term issue or to retire the debt out of noncurrent assets this occurs because liquidation does not result from the use of current assets Work-in-capital refers to the excess of total current assets/totally current liabilities represents the new amount of a companys relative liquid resources work-in-capital is rarely disclosed on the balance sheet To determine the actual liquidity and availability of working capital to meet current obligations requires analysis of the composition of the current assets and their nearness to cash Long-term Liabilities are obligations that a company does not expect to pay within the operating cycle...
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