Which of the following statements about accrued expenses not true?
A) Accrued expenses include taxes payable.
B) Accrued expenses include wages payable.
C) Accrued expenses are the same things as prepaid expenses.
D) Accrued expenses are amounts owed from transactions that have occurred but for which payments are not yet due.

Question

Quizplus · Accepted Answer

Accrued expenses are costs that have been incurred but not yet paid, contrasting with prepaid expenses, which are payments made in advance for goods or services to be received in the future. Thus, accrued expenses and prepaid expenses are not the same.

Which of the Following Statements About Accrued Expenses Not True