Which of the following best describes an accrued liability?
A)A liability whose amount can only be estimated.
B)A liability whose recording has not been triggered by an external event.
C)A liability whose related expense is not recognized until the next period.
D)A liability whose recording was triggered by an internal event.

Question

Quizplus · Accepted Answer

An accrued liability is a liability that has been incurred, but not yet paid or recorded through a standard transaction. This typically happens when a company has received goods or services but has not yet received an invoice from the supplier, making it an obligation that arises from internal events, such as the accrual of interest expense or wages that have been earned by employees but not yet paid.

Which of the Following Best Describes an Accrued Liability