Asked by
Jyotika Sharma
on Oct 28, 2024
Verified
Which of the following describes an accrued liability?
A) It is an expense that has been both incurred and paid.
B) It is an expense that has been incurred but not yet paid.
C) It is an expense that has been prepaid but not yet consumed.
D) It is a liability where the cash flow has taken place but the revenue has yet to be earned.
Accrued Liability
A liability that has been incurred, often for expenses, that has not yet been paid or recorded at the end of the accounting period.
- Distinguish among accounts payable, accrued liabilities, and other varieties of current liabilities.
Verified Answer
NM
Learning Objectives
- Distinguish among accounts payable, accrued liabilities, and other varieties of current liabilities.