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Matthew LauverMatthew Lauver 

What does this mean? How do I get to Account objects Type field? I can get to Accounts (record) Type.

The Account object's Type field must have the following picklist values: Prospect, Customer, Pending. Before creating the approval process, verify the values in your Account object setup
Go to Account > Type
Then, in the 'Account Type Picklist Values'
Click new and add each of those Prospect, Customer, Pending.
SandhyaSandhya (Salesforce Developers) 
Hi Mattew,

click setup -- build -- customize --- account -- fields -- Type --view--- Account Type Picklist Values--new

There you can add picklist values line by line

Please let us know if you need any more help.

Thanks and Regards
Vasani ParthVasani Parth
++ . You can follow the steps shown in the image.

User-added imageUser-added imageUser-added image

Please mark this as the best answer if this helps
Matthew LauverMatthew Lauver
When I search build there is not a customize option.
Matthew LauverMatthew Lauver
Your images didn't show up
SandhyaSandhya (Salesforce Developers) 

Hi Matthew,

Please see below screenshots (Note: Right click on image and save  to your system so that you can see it clearly) 

step1. click on setup on top right side.

User-added image

step2.on the left side when you scroll down click build.

User-added image

step3. click on customize --- accounts--fields--type

User-added image

step4:click newUser-added image

step5:Add to Picklist.

User-added image

Hope this helps you!

Please accept my solution as Best Answer if my reply was helpful. It will make it available for other as the proper solution. If you felt I went above and beyond, you can give me kudos.
Thanks and Regards