Which of the following is most likely to be reported as an accrued liability?
A)Supplies.
B)Wages Expense.
C)Prepaid Rent.
D)Property and Equipment.

Question

Quizplus · Accepted Answer

Wages expense is the only option that represents an expense that has been incurred but has not yet been paid in cash. This is a common example of an accrued liability. Supplies are an asset until they are used, prepaid rent is a prepayment of future rent, and property and equipment are also assets.

Which of the Following Is Most Likely to Be Reported