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:

Activity Variance

The difference between the budgeted and actual amount of an activity, such as hours worked or units produced, affecting budget and cost planning.

Budgeting

A financial planning process that involves the estimation of future revenues and expenses over a specified period.

Personnel Expenses

Costs associated with employing staff, including wages, benefits, and taxes.

Client-visits

Meetings or engagements with clients outside the company's premises for business discussions or services.