Which account type is classified under liabilities?

The classification of accounts is a fundamental concept in bookkeeping and accounting. Liabilities represent what a business owes to external parties. They are obligations that the company must settle in the future, typically through the transfer of cash, goods, or services.

Accounts Payable falls under this category because it specifically refers to amounts a business owes to its suppliers or creditors for purchases made on credit. This means that when a company buys goods or services but hasn't yet paid for them, the amount owed is recorded as an account payable, reflecting a liability.

Other account types listed, such as revenue, expenses, and owner's equity, do not belong in the liability category. Revenue represents income generated from business operations, expenses account for costs incurred to earn revenue, and owner's equity reflects the owner's claims on the assets of the business after all liabilities have been deducted. Understanding the distinction between these classifications is vital for accurate financial reporting and analysis.