Which of the following accounts are normally reported as current liabilities on a classified balance sheet?
A)Accounts Payable and Prepaid Insurance
B)Interest Payable and Interest Receivable
C)Income Taxes Payable and Salaries Payable
D)Capital Stock and Accounts Payable

Question

Quizplus · Accepted Answer

Income Taxes Payable and Salaries Payable are typically reported as current liabilities on a classified balance sheet. A is incorrect because Prepaid Insurance is reported as a current asset. B is incorrect because Interest Payable is a current liability, but Interest Receivable is a current asset. D is incorrect because Capital Stock is reported as part of stockholders' equity, not as a liability.

Which of the Following Accounts Are Normally Reported as Current