Current liabilities are sums due to be paid within 12 months after the reporting period. Most organisations separate liabilities into current and non-current on their balance sheet. Usually, current is within 12 months and non-current is longer than 12 months. As an example, accounts payable invoices from suppliers would be current liabilities, while loans and mortgages that are payable over a term exceeding one year would be non-current or long-term liabilities. The distinction is important as current liabilities are a component of the current ratio, often used to assess the solvency of a company. See also Assets, Current; Balance Sheet, Ratio Analysis and Ratio, Current.