An example of a current liability that must be accrued is
A)accounts payable.
B)current maturity of long-term debt.
C)revenue received in advance.
D)income taxes payable.

Question

Quizplus · Accepted Answer

Income taxes payable is a current liability that must be accrued as it represents the amount of income taxes owed to the government but not yet paid. Accrual of income taxes payable ensures that the expense is recognized in the period in which it's incurred and the liability is reflected in the financial statements. Other options such as accounts payable, current maturity of long-term debt, and revenue received in advance are also current liabilities, but they don't necessarily require accrual. Accounts payable and current maturity of long-term debt are recorded when payment is due, and revenue received in advance is recognized as a liability in the period it's received, without additional accrual.

An Example of a Current Liability That Must Be Accrued