[mjp44]

Simple balance sheet question. I had a practice question asking what were the total current assets on the balance sheet. Prepaid taxes were on the B/S but not included in the answer for total current assets. I though it was a current asset but i could be mistaken.

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[gobias]

Prepaid taxes have been current assets every time I've encountered them. I can't think of a scenario where they wouldn't be classified as such.

F - 86
R - 90
A - 97
B - 91

[Noct]

A current asset is one which is reasonably assumed to be converted/redeemed/sold within one year. If the actual tax liability is more than a year out then the prepayment cannot be current.

FAR - 79 - 07/2012
AUD - 65, 78 - 11/2012
BEC - 76 - 11/2012
REG - 78 - 01/2013
ETH - 98 - 01/2013

Material: Wiley books

[Author]

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