Resources ❯ Accounting Terms

Short-Term

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What is the definition of Short-Term?

Referring to a time frame that is typically less than one year, often used in financial contexts to describe obligations or assets that are due or expected to be liquidated within that period.

Using Short-Term in an Example

In accounting, short-term liabilities are obligations a company expects to settle within one year, such as accounts payable and accrued expenses.

Using Short-Term in a sentence

The CFO emphasized the importance of managing our short-term debts to maintain the company's liquidity over the next few quarters.

Related Terms

Surviving Spouse

A person whose spouse has died within the tax year and who may file a joint tax return for that year. Additionally, the surviving spouse can file joint returns for the next two years if they remain unmarried and maintain a household as the principal residence for a dependent child.

Swap

A financial contract in which two parties agree to exchange streams of payments over a specified period, based on different indices such as interest rates, foreign exchange rates, or equity indices, applied to a notional amount. Swaps typically do not involve the exchange of principal.

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