For each item numbered below, select the appropriate effect on liabilities listed in a through e that each transaction describes.You may use each letter more than once or not at all.In some cases, two effects are correct.
-Accrued payroll taxes that the firm has to pay to the federal government within three months.
A) Decrease current liabilities
B) Increase current liabilities
C) No effect on recorded current liabilities
D) Accrued contingent liability
E) Contingent liability disclosed in the notes only

Question

Quizplus · Accepted Answer

Accrued payroll taxes that the firm has to pay within three months are considered a current liability, increasing the total current liabilities on the balance sheet.

For Each Item Numbered Below, Select the Appropriate Effect on Liabilities