A company records interest that it owes, but has not yet paid, at the end of the fiscal year. This recognition of interest generates a(an)

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Accrued liabilities are expenses that a company has incurred but has not yet paid. In this case, the interest that the company owes but has not yet paid is recognized as an accrued liability because it represents an obligation that the company needs to fulfill in the future.

A Company Records Interest That It Owes, but Has Not