What term is used for debts of a business that are typically paid within one year?

The term used for debts of a business that are typically paid within one year is "current liabilities." This classification includes all obligations that a company is expected to settle within a short period, usually within a fiscal year. Current liabilities are crucial for assessing a company's short-term financial health, as they represent the company's financial commitments that need to be met in the near term.

These can include amounts such as accounts payable, accrued expenses, short-term loans, and other types of liabilities that do not extend beyond one year. Proper management of current liabilities is essential for maintaining liquidity and ensuring that the business can cover its short-term obligations without running into financial distress.

Understanding the nature of current liabilities helps stakeholders gauge the company's operational efficiency and stability in its cash flow management, which are vital for sustaining ongoing operations.