MICHELLE: How did you do on that accounting exam?

NICOLE: I just missed a B by two points.

MICHELLE: At least you passed the exam!

NICOLE: I know. But I was hoping for a higher grade since I studied so hard for this exam.

MICHELLE: Maybe there were some questions that the professor graded wrong.

NICOLE: I agree. We had one question that asked, how should a deposit on a piece of equipment that is to be purchased within one year be classified on the entitys balance sheet?

MICHELLE: Thats easy. Even I know the answer to that question. It would be recorded as a current asset.

NICOLE: Thats exactly how I answered the question, and it was graded wrong.

MICHELLE: You need to go to the professor and tell him that the grading guide is in error. NICOLE: Before I do that, I want to be sure of the answer.

Required: Utilize the FASBs Codification to provide a specific reference for Nicole on her issue.