Liabilities the business owes in the short term.

• A. Current Assets
• B. Current Liabilities
• C. Net Current Assets/Working Capital
• D. Long-Term Liabilities

Answer: (B)

The main idea here is timing of debts. Short‑term liabilities are debts the business must pay within the next 12 months. This includes amounts owed to suppliers (trade payables), short‑term bank borrowings or overdrafts, taxes payable, and accruals. These are different from current assets, which are things the business owns and expects to convert into cash within a year, and from long‑term liabilities, which are debts due after more than a year. Net current assets or working capital is current assets minus current liabilities, a liquidity measure, not a liability category. So the statement describes current liabilities.