Are wages payable current liabilities?

[accountinglads]

On a company’s balance sheet, wages payable is supported as a current liability. This is because generally, they are due within a short time – often within days or weeks – normally the next payroll run. Obligations owed due that can be settled within the next 12 months and as wages are paid on a regular basis, they qualify. Accuracy in recording wages payable assists the stakeholders to understand the short — term obligations of the company, and it also helps the company to comply with accrual based accounting standards.

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