Which of the following is an example of an accrued liability?
A) Accounts payable.
B) Notes payable.
C) Prepaid insurance.
D) Product warranty liability.

Question

Quizplus · Accepted Answer

An accrued liability is an expense that has been incurred but not yet paid. In this case, product warranty liability is an expense that the company is obligated to pay in the future, but has not yet paid, making it an example of an accrued liability. Options A and B are examples of current liabilities, and option C is a prepaid expense, which is not a liability.

Which of the Following Is an Example of an Accrued