Which statement below is FALSE?
A)Income taxes payable is an accrued liability.
B)Accrued liabilities can include liabilities for salaries.
C)Assets are divided into current and long-term categories.
D)Prepaid expenses include accrued interest payable.

Question

Quizplus · Accepted Answer

Prepaid expenses are expenses paid for in advance, while accrued interest payable is a liability that arises when interest payments have been earned but not yet paid. Therefore, prepaid expenses cannot include accrued interest payable.

Which Statement Below Is FALSE