Quicken & Other Budget/Accounting Software/Asset



What is the difference for :

Other asset and other current asset?
Other liability and other current liability?

Both similar?

ANSWER: Current assets are those that are likely to be used up or converted to cash within 12 months
Long term assets are those likely to be used up or converted to cash some time in the
future longer than 12 months

Linda Saltz

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I am actually asking :

What is the difference for :

Other asset and other current asset? - not other long term asset
Other liability and other current liability?


When an accounting system is set up, the USER defines the chart of accounts.
And sometimes the user  will set up an account with "ambiguous" terminology making it difficult to understand the purpose of that account.  

I do a lot of consulting and cleanup accounting work and encounter questions like this all the time.   

When I see an account that I cannot figure out what it is used for I will

1. run a report on that account and look at all the transactions posted to it.
  this will tell me its purpose.  I will then "rename the account"
  to a name that will have more meaning.

2. look at the ending balance  to see if it is accurate for the purpose it was set up for

If I find that the account holds values for multiple purposes I will set up several new
chart of accounts and reclassify the balance from the ambiguous account to an account specific for its purpose.  Then I will make the ambiguous account inactive.

In my opinion "other curret asset" should be an account type, not an account name. I have seen some software applications use "other asset" as an account type to define "long term assets".

If I see either Other asset or Other current asset as an account name. It is to "generic".  I will rename it or reclassify the balance and make it inactive so it cannot be used in the future.

Hope this helps.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
We sell and support QuickBooks Enterprise

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I think your answer doesnt really answer my question. I was asking about the difference of the below :

Other asset and other current asset?
Other liability and other current liability?

Take note that this is an account type not account name. So i need to know the difference.

Thanks for clarifying.

Account types are designations set up by the software developers.
In most software here in the USA,  the
Asset account types are
Accounts receivable
Current Asset
Fixed Asset
Other Asset - where other asset is short for long term asset ( that which
  will convert to expense or cash after 12 months

Liability account types are
Accounts payable
Current Liabilities
Credit card
Other Liabilities - where other liability is short for Long Term liability
   (that which will NOT be paid in the next 12 months)

If your software has
Other asset and Long term asset
Other liability and Long term liability
Then I don't know what the purpose of the other asset and liability types are.
You could look up in the software help menu to see what they have as a definition

In my opinion ... I would  would simply ignore the Other asset and other liability types.
Accounting terminology needs to be clearly understood by the user, management who uses reports to make business decisions, accountant who prepares the tax return.  So if it takes that much effort for us to figure out what the intention was of the software developer when they set up those types, then we should not use it because management and the accountants will have difficulty with it too.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com


QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com


Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
Producer of www.QBalance.com over 100 pages devoted to QuickBooks help and support and training for small business owners in tax and accounting issues.

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