PRC-1 · Chapter 4 · Question 85 of 100
Accrued expenses, representing short-term obligations for costs already incurred, are typically classified in the statement of financial position as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Current liabilities
Explanation
Accrued expenses must typically be settled within the normal operating cycle or within 12 months, making them current liabilities.
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