those liabilities that the firm reasonably expects to pay within the next year.
Those liabilities that the firm reasonably expects to pay within the next year
Answer:
When discussing financial liabilities that a firm anticipates settling within the upcoming year, we are referring to current liabilities. Current liabilities are obligations or debts that a company expects to repay or settle within its normal operating cycle, usually within one year. These liabilities include accounts payable, short-term loans, accrued expenses, and any other debts due within the next year. Monitoring current liabilities is vital for assessing a company’s liquidity and short-term financial health. By accurately managing these liabilities, businesses can ensure they have enough resources to meet their short-term financial obligations.