Question

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 E. Current liabilities

B. Long-term investments F. Long-term liabilities

C. Plant assets G. Equity

D. Intangible assets

13. Income taxes payable

Short answer

The correct answer isA, Current liabilities.

Step-by-step solution

Definition of income tax

The amount paid to the government of a country on the basis of a percentage of the earnings is known as income tax of the individuals and organization.

Reason for choice

Income tax must be paid in the accounting year in which it is due, hence it should be disclosed under current liability section of a particular accounting period of the organization