Expenses accured at the end of the accounting year is treated in the balance sheets as

Expenses accrued at the end of the accounting year are treated in the balance sheet as current liabilities. This is because they represent obligations that the business owes but has not yet paid for. Accrued expenses are recorded as current liabilities until they are paid, after which they are then moved to the income statement as expenses. Examples of accrued expenses include salaries, rent, interest on loans, and taxes. By recording these expenses as current liabilities, the balance sheet provides an accurate representation of the company's financial obligations and financial health.