Which of the following describes the term "current liabilities"?

The term "current liabilities" refers specifically to obligations that a company is required to settle within one year. These liabilities typically include items such as accounts payable, short-term loans, and other debts that are due to be paid off within a relatively short timeframe. Current liabilities are important for assessing a company's short-term financial health and its ability to cover immediate obligations with available resources.

In contrast, long-term debts are classified as non-current liabilities, as they are due for payment beyond the one-year horizon. Investments in long-term assets relate to capital expenditures and do not fall under the category of liabilities at all. Fixed expenses accrued over time may pertain to operational costs but do not specifically describe the nature of liabilities as current. Therefore, the accurate definition aligns with the requirement to recognize obligations that need to be settled within one year, facilitating effective financial management and analysis.