An amount owed but not paid is called a(n):
A)prepaid expense.
B)adjusted liability.
C)accrued liability.
D)note receivable.

Question

Quizplus · Accepted Answer

An amount owed but not paid is called an accrued liability. Accrued means accumulating or increasing over time, and in accounting, it specifically refers to expenses or revenues that have been incurred but not yet paid or received. Accrued liabilities include things like unpaid wages, taxes, or interest expense. Prepaid expenses are payments made in advance for goods or services that will be received in a future period. Adjusted liability is not a common accounting term. A note receivable is an asset, not a liability, and refers to a written promise to receive a specified amount of money at a future date.

An Amount Owed but Not Paid Is Called A(n)