Which of the following describes an accrued liability?
A)It is an expense that has been both incurred and paid.
B)It is an expense that has been incurred but not yet paid.
C)It is an expense that has been prepaid but not yet consumed.
D)It is a liability where the cash flow has taken place but the revenue has yet to be earned.

Question

Quizplus · Accepted Answer

An accrued liability is an expense that has been incurred but not yet paid. It represents an obligation to pay for goods or services that have been received or consumed but for which payment has not yet been made. Examples of accrued liabilities include salaries payable, rent payable, and interest payable.

Which of the Following Describes an Accrued Liability