The Licensee is a trustee of a trust. In calculating the ratio for the trust do amounts owing by the trust to beneficiaries have to be included as current liabilities?
The amounts owing by the trust to beneficiaries are certainly liabilities of the trust. Whether those liabilities are current liabilities or non-current liabilities should be determined by an accountant. In making this determination the accountant must apply applicable accounting principles, practices and policies.
Related Questions
- The Licensee is a trustee of a trust. In calculating the ratio for the trust do amounts owing by the trust to beneficiaries have to be included as current liabilities?
- Does military housing allowance need to be included when calculating child support obligations in WA State?
- How do you convert a Profit Sharing Plan with another trustee to a Principal Trust Individual 401(k)?