Accrued liabilities generally differ from accounts payable in that accrued liabilities:
A)Are often based on estimates.
B)Are usually confirmed at year-end.
C)Depend upon the existence of a transaction for original recording of the account.
D)Are never included in cost of goods sold.

Question

Quizplus · Accepted Answer

Accrued liabilities are often based on estimates, such as estimates of the amount of a bonus that will be paid to employees at year-end or an estimate of the amount of interest that will accrue on a loan. In contrast, accounts payable are usually confirmed at year-end, as they represent amounts owed to vendors for goods or services already received.

Accrued Liabilities Generally Differ from Accounts Payable in That Accrued