What statement and type of account does Accrued expense belong to?
Understand the Problem
The question is asking about the classification of 'accrued expense' in accounting. It seeks to identify the financial statement that this type of expense belongs to, as well as its nature (asset, liability, etc.).
Answer
Statement of financial position and liability.
The final answer is statement of financial position and liability.
Answer for screen readers
The final answer is statement of financial position and liability.
More Information
Accrued expenses are recognized before they're paid and appear as current liabilities on the balance sheet.
Tips
Accrued expenses are often confused with accounts payable, but they differ as they are not yet invoiced.
Sources
- What is an Accrued Expense? - Example, Video Explain - corporatefinanceinstitute.com
- Accrued Expenses vs Accounts Payable: What's the Difference? - suozziforny.com
- Accrued Expenses: Definition, Examples, and Pros and Cons - investopedia.com
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