What is meant by Other Current Asset or Other Current Liability?

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Other Current Assets and Other Current Liabilities are those Current Assets or Current Liability that are too insignificant to be classified separately. Hence, they all are grouped together under the heading ‘Other Current Assets’ or “Other Current Liability” as the case may be.
Current Assets are assets that can be liquated in the short amount of time, Examples of Current Assets are Cash, Accounts receivables, Inventory, etc. There are instances when there are items of ‘current asset’ nature but their amount or nature is so small or insignificant that they all grouped together under common general heading of “Other Current Assets”.
As with the case of Current Assets, Current Liabilities are obligations to be paid off in coming period. Example Include Accounts payable, Interest payable. Any insignificant nature or amount of any kind of liability is grouped together under the heading “Other current liabilities” that do not require separate disclosures on the Balance Sheet.

ekkarill92 answered 1 year ago

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