Which of the Following Describes an Accrued Liability

question 23

Multiple Choice

Which of the following describes an accrued liability?

• A)It is an expense that has been both incurred and paid.
• B)It is an expense that has been incurred but not yet paid.
• C)It is an expense that has been prepaid but not yet consumed.
• D)It is a liability where the cash flow has taken place but the revenue has yet to be earned.

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Definitions:

Retail Products

Goods that are sold to the public through stores, online, or other channels, typically for personal or household use.

Durable Goods

Products or goods that do not quickly wear out and provide utility over time, often lasting for years.

Smartphones

Mobile devices that combine features of a traditional mobile phone with those of other popular consumer gadgets, like personal digital assistants, media players, and GPS navigation units.

Imperishable Goods

Items or products that do not deteriorate in quality or value over time, such as diamonds or precious metals.