Correlation Between Accounting and Current Liabilities of Manufacturing Companies of India |
This paper is based on the relationshipbetween Accounting and Current Liabilities. A current liability is anobligation that is payable within one year. In those rare cases where theoperating cycle of a business is longer than one year, a current liability isdefined as being payable within the term of the operating cycle. The operatingcycle is the time period required for a business to acquire inventory, sell it,and convert the sale into cash. In most cases, the one-year rule will apply.