Asked by MATTANAPORN CHANTIYANON on May 22, 2024
Verified
Accrued taxes payable are generally reported on the balance sheet as a current liability.
Accrued Taxes Payable
Taxes that have been incurred but not yet paid, recorded as a liability on the company's balance sheet.
Current Liability
A financial obligation or debt that is due within one year or within the normal operating cycle of a business.
Balance Sheet
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the company’s financial condition.
- Elucidate the differences between current assets, plant assets, and liabilities found on the balance sheet.
Verified Answer
VS
Victoria SandovalMay 22, 2024
Final Answer :
True
Explanation :
Accrued taxes payable are current liabilities because they are taxes that have been incurred but not yet paid, and are expected to be paid within a year. As a result, they are reported on the balance sheet as a current liability.
Learning Objectives
- Elucidate the differences between current assets, plant assets, and liabilities found on the balance sheet.