What statement and type of account does Accrued expense belong to?
Understand the Problem
The question is asking about the classification of accrued expenses within accounting statements, specifically which type they belong to among given options.
Answer
Statement of financial position and liability.
The correct statement and account type for accrued expenses is the statement of financial position and liability.
Answer for screen readers
The correct statement and account type for accrued expenses is the statement of financial position and liability.
More Information
Accrued expenses are liabilities that arise from expenses that have been incurred but not yet paid by the end of the accounting period.
Tips
A common mistake is confusing accrued expenses with accounts payable; remember, accounts payable are obligations from billing systems, not incurred expenses awaiting payment.
Sources
- What's the Difference Between Accrued Expenses and Accounts Payable? - investopedia.com
- Year-End Accruals - finance.princeton.edu
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