Do you include deferred taxes in current assets when calulating current ratio ratio?

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1068945

2026-04-21 02:11

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No, deferred taxes are not included in current assets when calculating the current ratio. The current ratio is defined as current assets divided by current liabilities, and it typically includes cash, accounts receivable, and inventory, among others. Deferred tax assets are generally classified as non-current assets, as they represent taxes that can be recovered in future periods.

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