JAMB Accounts Principles of Accounts 2016 Paper

Concept:A balance sheet reports assets, liabilities, and capital. Accrued expenses belong to liabilities.Explanation:Accrued expenses are costs already incurred but not yet paid.They are recorded in the period they occur, even though payment comes later.Because the company still owes the amount, it is a present obligation.Therefore, accrued expenses appear under current liabilities in the balance sheet of a limited liability company.Lighting and heating, salaries and wages, and general expenses are revenue expenditure items.These expenses are shown in the income statement, not on the balance sheet.So the only balance sheet item among the options is accrued expenses.Answer:A. Accrued expenses.