Which of the following will be found in the liabilities section of a firm's classified balance sheet?

Clarify the nature of each term: Retained Earnings is part of equity, representing accumulated profits. Prepaid Expenses are assets, as they represent payments made in advance for future benefits. Inventory is also an asset, as it represents goods available for sale. Accounts Payable, however, is a liability, as it represents amounts owed to suppliers for goods or services received.

Identify the correct classification: Since Accounts Payable represents an obligation to pay suppliers, it is appropriately classified under the liabilities section of the balance sheet.