If a company has not yet paid their existing tax payable they will recognise a in the statement of financial position.

A) current tax asset.
B) non-current asset.
C) current tax liability.
D) non-current liability.

Question

zachary murphy · Accepted Answer

Final Answer : C, Explanation :  If a company has not yet paid their existing tax payable, it means they owe money to the government in the current financial period. Therefore, the amount should be recognized as a current tax liability on the statement of financial position. Option A is incorrect because it refers to an asset, which represents a future economic benefit, while tax payable is a current obligation. Option B and D would also be incorrect because tax payable is a current obligation, not a non-current asset or liability.

If a company has not yet paid their existing tax payable they will recognise a in the statement of financial position.

A) current tax asset.
B) non-current asset.
C) current tax liability.
D) non-current liability.

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Learning Objectives

Related questions

If a company has not yet paid their existing tax payable they will recognise a in the statement of financial position.A) current tax asset.B) non-current asset.C) current tax liability.D) non-current liability.

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Learning Objectives

Learning Objectives

Related questions

If a company has not yet paid their existing tax payable they will recognise a in the statement of financial position.

A) current tax asset.
B) non-current asset.
C) current tax liability.
D) non-current liability.