Cal. Code Regs. tit. 2 § 1051.8
Current through Register 2024 Notice Reg. No. 41, October 11, 2024
Assets and liabilities are segregated in the account chart as current and long-term. Current assets are those which are normally convertible to cash within a twelve-month period. Prepaid expenses have a cash-equivalent value and are included as current. Other assets are long-term.
Similarly, liabilities which will become payable within twelve months are classed as current.
The distinction between long and short-term need not be currently maintained in the accounts. It is sufficient to recognize the transition from long-term to current status on financial statement working papers, without actually making the entries in the books.
Cal. Code Regs. Tit. 2, § 1051.8