Thus, notes payable with maturity period of greater than one year are reported as non – current liabilities. A liability is classified as a current liability if it is expected to be settled in the normal operating cycle i. e. within 12 months. Generally, in a transaction of sale and purchase of goods, during the credit term, seller of goods need money. Items in this account could include bills from credit card companies, landscaping services, office supply warehouses and more. Bills payable can be a synonym of accounts payable, or it can refer specifically to short-term borrowing by banks from other banks, often the country's central bank. Types of Liabilities: Non-current Liabilities. Current liabilities are short-term business debts that are due to be paid before the end of the current fiscal year. The quick ratio: Current assets, minus inventory, divided by current liabilities; The cash ratio: Cash and cash equivalents divided by current liabilities . These upcoming charges are reported on a company’s balance sheet.Current liabilities include obligations such as accounts payable and amounts due to suppliers, employee wages and payroll tax withholding.Because they describe upcoming requirements that the company’s … The amounts owed by the business (acceptor of the bill) are liabilities referred to as bills payable or more fully bills of exchange payable. List of Current Liabilities Examples: Below mentioned are the few examples of current liabilities : Accounts Payable: Accounts payable are nothing but, the money owed to the manufacturers. Sundry and bills payable are examples. Short term liabilities are the liabilities which have to be redeemed in the near future. Non-current liabilities, also known as long-term liabilities, are debts or obligations that are due in over a … Short Term or Current Liabilities. For example – trade payable, bank overdraft, bills payable etc. The operating costs of a business include income tax, interest, wages, and taxes. The current ratio is a measure of the firm’s short-term solvency. c)a bank loan due in 18 months. Liabilities include accrued wages and wages and salaries payable. Accrued Expenses: They are the bills which are due to a 3rd party but not payable, for instance, wages payable. Payroll liabilities are money that companies pay to employees. Bills Payable on the Balance Sheet. Bills Payable (B/P) is a liability document which shows the indebtedness of an individual, an organization, etc.When an individual or an organization makes a credit purchase of any goods or avails service. Meaning of Bills Payable. A ratio of greater than one means that the firm has more current assets than current claims against Examples of current liabilities include accounts payable, interest payable, income taxes payable, bills payable, short-term loans, bank account overdrafts and accrued expenses. Money owed to employees and workers are not included in accounts payable. Whereas, notes payable with a maturity period of less than a year are represented under current liabilities in balance sheet. Keep in mind that any money a company owes its employees (wages payable) or the government for payroll taxes (taxes payable) is a current liability, too. Current liabilities could include all of the following except: a)an accounts payable due in 30 days. Thus current liabilities include creditors, bills payable, accrued expenses, short-term bank loan, income-tax liability and long-term debt maturing in the current year. 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