Accrued liabilities are disclosed in financial statements by
A) a footnote to the statements.
B) showing the amount among the liabilities but not extending it to the liability total.
C) an appropriation of retained earnings.
D) appropriately classifying them as regular liabilities in the balance sheet.

Question

Quizplus · Accepted Answer

Accrued liabilities are recognized in the financial statements by classifying them as regular liabilities in the balance sheet. This reflects the company's obligation to pay for goods or services that have been received but not yet paid for, ensuring accurate representation of the company's financial position.

Accrued Liabilities Are Disclosed in Financial Statements by