Which of the following statements is false?
A) Working capital represents assets needed to carry out the normal operations of the business.
B) Wages payable are part of a firm's accounts payable,
C) Because of accrual accounting, a firm's net income over some period is not necessarily the same as its cash flows.
D) Capital is recorded on the liability side of the balance sheet.

Question

Quizplus · Accepted Answer

Wages payable are not part of accounts payable; they are a separate liability on the balance sheet. Accounts payable typically refers to amounts owed to suppliers for goods and services.

Which of the Following Statements Is False