Accrued expenses affect a. liabilities Ob. fixed assets C. assets d. prepaid expenses on the balance sheet.
Accrued expenses affect a. liabilities Ob. fixed assets C. assets d. prepaid expenses on the balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![**Question:**
Accrued expenses affect _____ on the balance sheet.
**Options:**
- a. liabilities
- b. fixed assets
- c. assets
- d. prepaid expenses
**Explanation:**
Accrued expenses are recorded as liabilities on the balance sheet. They represent costs that have been incurred but not yet paid, indicating an obligation to pay in the future. This concept is crucial for understanding how businesses track and manage their financial obligations over time. Understanding this placement is key for accurately interpreting the financial health of an organization.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c03f347-0770-49c0-bb69-c406c0f8dbc2%2Fea43d752-0a86-4a48-8e10-427d605ca6b6%2Fesgoeq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Question:**
Accrued expenses affect _____ on the balance sheet.
**Options:**
- a. liabilities
- b. fixed assets
- c. assets
- d. prepaid expenses
**Explanation:**
Accrued expenses are recorded as liabilities on the balance sheet. They represent costs that have been incurred but not yet paid, indicating an obligation to pay in the future. This concept is crucial for understanding how businesses track and manage their financial obligations over time. Understanding this placement is key for accurately interpreting the financial health of an organization.
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Accrued expenses are those expenses which are accrued and without invoice.
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