Financial accounting chapter 1 homework answers
Question:
Is accrued expenses payable an asset or liability?
Answer:
Accrued expenses are debts that get bigger over time and must be paid. Accounts payable are debts that need to be paid back soon. The amount owed for an accrued expense may be an estimate, so it can change, but the amount owed for an account payable never changes. On the balance sheet of a company, “Accrued Expenses” and “Accounts Payable” go under “Current Liabilities.” When an invoice comes in for a cost that has already been paid for, the amount is moved to “accounts payable.”
