Meaning
These are financial obligations a company owes for goods or services received, but not yet paid.
Definition
Accrued Liability is an expense incurred by a business that has not been paid or billed. It’s recorded as a current liability on the balance sheet.
Characteristics
- Expense incurred, payment due later.
- Often estimated.
- Matches expenses to the period they occur.
Examples
- Employee salaries earned.
- Interest payable on loans.
- Unpaid utility bills.
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