What type of account is Accrued Salaries Payable classified as?

Accrued Salaries Payable is classified as a liability because it represents an obligation for the company to pay its employees for work that has already been performed but for which payment has not yet been made. This account captures the amount of salary expense that employees have earned but that is not yet recorded as a cash outflow since the actual payment will occur in the future, typically in the next pay cycle.

In accounting, liabilities are defined as present obligations that result from past transactions or events, which are expected to be settled in the future. Since accrued salaries fall into this category—representing amounts owed to employees—it appropriately reflects the company’s financial responsibility. Understanding this classification is vital for accurate financial reporting and management of payroll expenses.