Which of the following typically is not classified as an accrued liability?
A)state employment taxes
B)monthly sales tax owed to the city
C)monthly mortgage payments
D)federal employment taxes

Question

Quizplus · Accepted Answer

Accrued liabilities are expenses that a company has incurred in the current period but will pay for in a future period. State and federal employment taxes are typically accrued liabilities because they are paid quarterly, whereas monthly sales tax owed to the city is typically recorded as a current liability. Monthly mortgage payments are not accrued liabilities since they are paid in the current period for the current period's expense.

Which of the Following Typically Is Not Classified as an Accrued