Which of the following is a component of current liabilities?

Current liabilities are obligations that a company is required to pay within a year, and they typically arise from everyday business operations. Salaries payable is classified as a current liability because it represents amounts owed to employees for work performed that have not yet been paid. These obligations are essential for accurate financial reporting and cash flow management.

On the other hand, accounts receivable refers to money owed to the company by its customers for goods or services delivered but not yet paid for; this is considered a current asset, not a liability. Short-term investments also fall under current assets, as they are financial instruments that a company intends to convert into cash within a year. Inventory is another type of current asset, representing goods that are ready for sale, rather than a liability that needs to be settled. Understanding these definitions is crucial for distinguishing between current assets and current liabilities within financial statements.