An example of a current liability that must be accrued is
A)accounts payable.
B)current maturity of long-term debt.
C)revenue received in advance.
D)wages payable.

Question

Quizplus · Accepted Answer

Wages payable is a current liability that must be accrued because the company has an obligation to pay its employees for work already performed, but the payment has not yet been made. Accrual accounting requires companies to recognize this expense and liability in the period in which it was earned, regardless of when it will be paid. This is done by recording an adjusting entry to accrue the wages expense and the related liability at the end of each accounting period.

An Example of a Current Liability That Must Be Accrued