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.