Which of the following most likely is an example of an accrued liability?
A) Interest payable
B) Accounts payable
C) Long-term debt
D) Sales tax payable

Question

Quizplus · Accepted Answer

Accrued liabilities are those expenses that have been incurred but not yet paid for. Interest payable represents interest that has been incurred but not yet paid, so it is the most likely example of an accrued liability.

B) Accounts payable represents amounts owed to suppliers for goods or services that have been received but not yet paid for, but it does not necessarily represent expenses that have already been incurred.

C) Long-term debt represents a borrowing agreement that may last for many years and is not typically considered an accrued liability.

D) Sales tax payable represents taxes due to the government on sales made by the company, but it is not necessarily an expense that has already been incurred.

Which of the Following Most Likely Is an Example of an Accrued