What statement and type of account does Accrued expense belong to?

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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.

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