Accrued liabilities are recorded for transactions where the company incurs an expense
A)but inadvertently failed to record the expense
B)but may not have recorded the liability for the expense because no invoice or goods have been received
C)but may not have recorded the liability for the expense because no invoice or goods have been shipped
D)but may not have recorded the liability for the expense because no assets were exchanged

Question

Quizplus · Accepted Answer

Accrued liabilities are recorded for expenses that have been incurred but not yet paid. The company may not have recorded the liability for the expense because they have not received an invoice or goods, but they still owe the expense.

Accrued Liabilities Are Recorded for Transactions Where the Company Incurs