Which of the following is an example of an accrued liability?
A)Accounts payable.
B)Notes payable.
C)Prepaid Insurance.
D)Product warranty liability.

Question

Quizplus · Accepted Answer

An accrued liability is an expense that has been incurred but not yet paid, and product warranty liability fits this definition as it represents the estimated cost of fulfilling warranties on products sold, which could be incurred but not paid until a later time. Accounts payable and notes payable are both examples of current liabilities, which are debts owed by a company that are due within one year, while prepaid insurance is a current asset that represents insurance purchased in advance to cover future periods.

Which of the Following Is an Example of an Accrued