Under what item is legal expenses on a balance sheet?


Legal unpaid obligations due within a year will be classified as current liability. Usually, they appear as accrued legal liability or similar.

Also, many times if the expenses were incurred during the financial period but not yet billed, they are classified as accrued legal liability. If they were incurred and billed, they are likely part of accounts payable.

So, as part of month end close process- this should be one of the items on the checklist to ensure they are accurately reflecting on the balance sheet.



*** Our response to a question asked on a quora.

Posted In: Accounting

Go Back