Which one of the following is an example of an accrued liability?
A)Rent that has been incurred, but have not been paid at the end of the period.
B)Equipment that will benefit several periods has been purchased.
C)An insurance policy that expires in a future period has been acquired.
D)Supplies are purchased and used over several months.

Question

Quizplus · Accepted Answer

An accrued liability is a liability that has been incurred but not yet paid. Rent that has been incurred but not paid at the end of the period is an example of an accrued liability. Option B is an example of a capital expenditure, option C is an example of a prepaid expense, and option D is an example of an inventory asset.

Which One of the Following Is an Example of an Accrued