Accrued liabilities are the results of both the accrual process and the time lag between an event and its complete resolution in the course of the cycle of operations.

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Accrued liabilities are amounts owed by a company for goods or services that have been received but have not yet been paid for. Accrual accounting requires that expenses be recognized when they are incurred, even if payment has not yet been made. This can result in a time lag between the occurrence of an event and the recognition of the related liability. Therefore, accrued liabilities are the result of both the accrual process and the time lag between the event and its resolution.

Accrued Liabilities Are the Results of Both the Accrual Process