Which of the following transactions that impact current liabilities has a corresponding entry on the income statement? A) Purchase inventory on credit from company XYZ on January 1 B) Payment to XYZ on February 1for a January 1 purchase C) Interest accrued on a note payable D) Payment to employees in March for wages earned in February

Question

Quizplus · Accepted Answer

Interest accrued on a note payable impacts current liabilities and also affects the income statement through interest expense.

Which of the Following Transactions That Impact Current Liabilities Has