The portion of bonds or notes payable that is due within one year is reported as a (n) a. expense on the income statement. b. current liability on the balance sheet. c. long-term liability on the balance sheet. d. part of stockholders' equity.

Current liabilities are short term financial obligations that are due within the current year. They are the obligations that a company is supposed to pay within the year. Businesses will closely monitor current liabilities as they have to be settled using the current assets.

Examples of current liabilities include accounts payable, interest payable, dividends declared, accrued expenses, and current maturities of long term debt. In financial statements, they are recorded as current liabilities on the balance sheet. Current liabilities are short term debts. They are not income to the business nor expenses because they not yet due.