Legal Definition of Current liability:  An existing debt; an indebtedness that should be paid off within a year’s time | Learn about the legal definition and importance of current liabilities for businesses. Discover examples of common current liabilities such as accounts payable, short-term loans, accrued expenses, and unearned revenue. Find out how managing these liabilities can impact a company’s financial health, cash flow, creditor relationships, and decision-making process. Stay informed and ensure the long-term success of your business