Accruals are "free" capital in the sense that no explicit interest must normally be paid on accrued liabilities.

Name: Accruals are "free" capital in the sense that no explicit interest must normally be paid on accrued liabilities.
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Question

Quizplus · Accepted Answer

Accrued liabilities represent expenses that have been incurred but not yet paid for, so they do not come with an explicit interest charge. However, if they are not paid in a timely manner, they may lead to penalties or other costs.

Accruals Are "Free" Capital in the Sense That No Explicit