Which of the following accounts are normally reported as current liabilities on a classified balance sheet?

Question

Quizplus · Accepted Answer

Income taxes payable and salaries payable are both current liabilities because they are debts owed by the company that are expected to be paid within one year. Accounts payable, which is also a current liability, is not included in choice A because prepaid insurance is an asset, not a liability. Interest payable and interest receivable are both current assets and not liabilities. Common shares is an equity account and not a liability.

Which of the Following Accounts Are Normally Reported as Current