Short-term liability

A short-term liability is a financial obligation that is to be paid within one year. This type of liability is classified within the current liabilities section of an entity’s balance sheet. Examples of short-term liabilities are:

  • Trade accounts payable
  • Accrued expenses
  • Taxes payable
  • Dividends payable
  • Customer deposits
  • Short-term debt
  • Current portion of long-term debt
  • Other accounts payable