Current liabilities are reported first in the liability section of the balance sheet because they have first claim on company assets.
The balance sheet lists current liability accounts and their balances; the notes provide explanations for the balances, which are sometimes required.
Contingencies are reported as liabilities if it is probable they will incur a loss, and their amounts can be reasonably estimated.
The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months.
The acid-test, or quick ratio, measures the ability of a company to use its near cash or quick assets to pay off its current liabilities.
Working capital is a financial metric that represents the operational liquidity of a business, organization, or other entity.