Give two examples of current liabilities.

Current liabilities are financial obligations that a company is required to settle within a year or within its operating cycle, whichever is longer. They are critical for assessing a company's liquidity and short-term financial health.

Accounts payable is a typical example of a current liability, as it represents amounts owed to suppliers for goods and services that have been received but not yet paid for. This obligation needs to be settled quickly, usually within a few months.

Short-term loans, also classified as current liabilities, are borrowings that the business must repay within a year. This includes any lines of credit or loans that are due in the near term, which can have a significant impact on the company's cash flow and short-term financial planning.

Understanding these terms is crucial in accounting and finance because they help to measure a company's ability to meet its short-term obligations and ensure smooth operations.