Which of the following is incorrect?
A)Current liabilities are those that will be satisfied within one year or the operating cycle,whichever is longer.
B)Interest that will be paid in the future is included in the reported amount of a current liability.
C)Current liabilities impact a company's liquidity.
D)Working capital is equal to current assets minus current liabilities.

Question

Quizplus · Accepted Answer

Interest that will be paid in the future is not included in the reported amount of a current liability. Current liabilities include obligations that are due within one year or the operating cycle, whichever is longer. Interest to be paid in the future is not due currently and therefore not included in current liabilities.

Which of the Following Is Incorrect