Other current liabilities are financial obligations of a company that are expected to be paid off within a year or less. Generally, this line item includes liabilities the company has assumed that are not significant enough to warrant individual recognition on the balance sheet. As with other balance sheet items, it is recorded at its present value - the amount the company expects to owe. This can include items such as accounts payable, unearned revenue, prepaid expenses, taxes payable, and interest payable.

Accounts payable is composed of the amount owed to vendors for goods and services a company has received, but has not yet paid. Unearned revenue is often related to accounts receivable and includes money paid in advance to the company. When a company receives the payment, the unearned revenue must be recorded as a liability until the company receives the goods and services.

Prepaid expenses are the opposite of accounts payable: a company pays in advance for goods or services it will receive in the future. These liabilities also must be recorded. Taxes payable are the amounts a company owes to governmental entities and are also noted as current liabilities in the balance sheet.

Finally, interest payable is the amount to be paid in interest to creditors over the course of the following year. It is typically added to "other current liabilities" because of its relatively small amount. In most cases, companies budget the bulk of their interest payments for longer-term debts that are recorded elsewhere on the balance sheet.

Other current liabilities represent the amount a company owes creditors and vendors for goods and services that it has yet to receive. These obligations must be recorded and monitored to ensure the company’s liquidity remains healthy. Companies often generate cash flow and liquidity ratios to better understand their current financial obligations and how they will affect future operations and performance.