A Challenge, page-9

Creditors are included in the liabilities. Basically liabilities are money that you owe or expect to pay.

So if equipment like cars are leased then the lease payments are a liability and you might pay so much each month.

Current liabilities are amounts payable within 12 months. So in simple terms, if a lease has 3 years to run and payments are $1000 per month then current liabilities are $12,000 and total liabilities are $36,000.

These are not contingent liabilities because they are due whatever happens. Metal streaming is a contingent liability because it is paid as metal is produced.