Which statement below is FALSE?
A)Income taxes payable are tax debts owed to the government.
B)Accrued liabilities can include liabilities for salaries and utilities.
C)Short-term investments include stocks and bonds of other companies.
D)Prepaid expenses include accrued interest payable.

Question

Quizplus · Accepted Answer

Prepaid expenses are payments made in advance for goods or services to be received in the future. On the other hand, accrued interest payable is a liability that represents the interest expense that has been incurred but not yet paid. Therefore, prepaid expenses cannot include accrued interest payable.

Which Statement Below Is FALSE