Generally, it is a liability that is currently due for payment. More specifically, it is a debt that an entity expects, with a reasonable level of certainty, to pay from existing current assets or through the creation of other current liability, within 12 months or during the operating cycle (whichever is longer). This includes amounts owed to creditors (accounts payable), notes payable, bank loans or the part of which due for repayment, unearned revenues, announced dividends, accrued expenses (taxes, salaries, wages, etc.) falling due, etc.

Liabilities that don’t meet these criteria are classified as non-current liability/ long-term liability.