What is Current Debt?
Current debt is any type of outstanding debt that is due for payment in full at some point in one calendar year from the current date. Current debt appears as a balance sheet item in the financial accounting records of a business, and is usually classified as part of the outstanding Payables of the company. The appearance on the monthly balance sheet helps to track any changes in current debt, including the retirement of all or a portion of a given debt, as well as the inclusion of new debts that are expected to be paid in full by the end of one year. Sometimes known as current liabilities, current debt can take several different forms. Perhaps the most common form includes invoices for goods and services received from a vendor. Unless the vendor account is structured to allow for a revolving line of credit, there is a good chance that an invoice was issued that includes terms of payment. The terms of payment may be anywhere from fifteen to sixty days from the invoice date, based on an
