short-term liability
1
5.1
- noun
- /ˈʃɔrtˌtɜrm laɪəˈbɪləti/
- Specialized
:
pasivo a corto plazo
- A healthy balance sheet should show a clear plan for paying off short-term liabilities within the next fiscal year.
Examples
-
Meanwhile, the cost of government guarantees of short-term liabilities is relatively small.
Blog text (23) -
Determine the current availability of liquid assets to cover short-term liabilities.
Academic text (2011) -
The purpose of financial institutions is to intermediate between low-risk short-term liabilities and higher-risk longer-term loans and securities.
Blog text (23) -
As noted above, upon consolidation of the central bank balance sheet with the Treasury monetary accounts, the interest-bearing reserve balances of the central bank remain as a short-term liability, similar to Treasury bills.
Academic text (2017) -
Given the mismatch between short-term liabilities and long-term assets, financial institutions (e.g., banks) are susceptible to "runs on the bank."
Blog text (23) -
Companies must ensure they have enough cash flow to cover their short-term liabilities when they come due.
-
Investors often assess a firm's ability to manage short-term liabilities before making investment decisions.
Surface Forms
Morphology
The meaning is directly and compositionally derived from 'short-term' (lasting a short duration) modifying 'liability' (an amount owed), so a learner who knows both words will understand it as an obligation that is due or applies for a short period. The precise accounting convention of 'within one year' is a technical detail, but the basic sense is transparent and predictable from the constituents.
Etymology
Short-term liability combines short-term (meaning something due soon) and liability (meaning something you owe), like a bill that must be paid quickly. So, the phrase means 'a debt that is expected to be paid within one year'.