Cal. Code Regs. tit. 2 § 1101.8
Current through Register 2024 Notice Reg. No. 36, September 6, 2024
Assets and liabilities are segregated in the chart of accounts between 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 fall into some category of long-term.
Similarly, liabilities which will become payable within twelve months are classed as current.
Status of the transaction at the time first recorded determines whether it is posted to a current or long-term account. It is unnecessary that transitions from long-term to current status be posted in the books. However, the proper segregation should be displayed on the balance sheet.
Cal. Code Regs. Tit. 2, § 1101.8