**Question:** Which of the following items would typically appear in the current liabilities section of a classified balance sheet?**Multiple Choice Options:**- Interest payable- All of these answer choices are correct.- Salaries payable- Accounts payable*Explanation:*The question is a multiple-choice format asking which items typically appear as current liabilities on a classified balance sheet. The options provided include specific types of payables and a choice indicating that all may be correct.

Answered: Which of the following items would…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current liabilities are those liabilities which are expected to be paid within the normal operating cycle or one year . These include bank overdraft, creditors,bills payable ,accounts payable etc

In a classified balance sheet ,liabilities which are to be paid at the earliest will be shown first. Current liabilities are shown first,then long term or fixed liabilities and finally capital. In the same way,asset which is most easily convertible into cash is shown first and then will follow those assets which are comparatively less easily convertible,so that the least liquid asset (goodwill) is shown last.

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