Question

Accrued wages and taxes are secured sources of financing because companies are obligated to make these payments before they make payments on any other loans or pay dividends.

a. True

b. False

Answer 1

Accrued Expense like SALARY AND TAXES

Accrued expenses, which are a type of accrued liability, are placed on the balance sheet as a current liability. That is, the amount of the expense is recorded on the income statement as an expense, and the same amount is booked on the balance sheet under current liabilities as a payable. Then, when the cash is actually paid to the supplier or vendor, the cash account is debited on the balance sheet and the payable account is credited. Accrued expenses are the opposite of prepaid expenses.

So based on above information i can say

Above statement is TRUE.....

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From Mona....