Estimated unpaid obligations for services or benefits that have been received prior to the balance sheet date are classified as:
A) accrued liabilities.
B) accounts payable.
C) miscellaneous assets.
D) deferred charges.

Question

Quizplus · Accepted Answer

Accrued liabilities are obligations that have been incurred but not yet paid, such as wages or interest. Therefore, estimated unpaid obligations for services or benefits that have been received prior to the balance sheet date should be classified as accrued liabilities. Accounts payable are obligations for goods or services that have been ordered but not yet received, while miscellaneous assets and deferred charges are unrelated to accrued liabilities.

Estimated Unpaid Obligations for Services or Benefits That Have Been