Accrued liabilities generally differ from accounts payable in that accrued liabilities:
A) Accumulate over time.
B) Are usually confirmed at year-end.
C) Depend upon the existence of a transaction for original recording of the account.
D) Are never included in cost of goods sold.

Question

Quizplus · Accepted Answer

Accrued liabilities accumulate over time, whereas accounts payable are typically short-term debts with a set due date. Accrued liabilities are recognized when expenses have been incurred but have not yet been paid. Therefore, they may include expenses that have accumulated over a period of time, such as interest or wages that have been earned by employees but not yet paid. Accounts payable, on the other hand, are debts that have been incurred but not yet paid for goods or services received.

Accrued Liabilities Generally Differ from Accounts Payable in That Accrued