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Q7(5)PSA

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Financial & Managerial Accounting
Found in: Page 154
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

A. Current assets

B. Long-term investments

C. Plant assets

D. Intangible assets

E. Current liabilities

F. Long-term liabilities

G. Equity

5. Taxes payable

The correct answer is E, Current liabilities.

See the step by step solution

Step by Step Solution

Definition of Taxes

The amount paid by the individuals and organizations depending on the income earned by them in the current financial period is known as the taxes paid or payable by the taxpayers.

Reason of choice

The taxpayers need to pay the due amount of taxes within one accounting period, so it should be disclosed as the current liabilities in the balance sheet of the organization.

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