California Code of Regulations
Title 2 - Administration
Division 2 - Financial Operations
Chapter 2 - State Controller
Subchapter 3 - Accounting Procedures for Special Districts
Article 3 - Airport Districts
Section 1051.8 - Current and Long-Term Assets and Liabilities

Assets and liabilities are segregated in the account chart as current and long-term. Current assets are those which are normally convertible to cash within a twelve-month period. Prepaid expenses have a cash-equivalent value and are included as current. Other assets are long-term.

Similarly, liabilities which will become payable within twelve months are classed as current.

The distinction between long and short-term need not be currently maintained in the accounts. It is sufficient to recognize the transition from long-term to current status on financial statement working papers, without actually making the entries in the books.