Which of the Following Best Describes an Accrued Liability

question 105

Multiple Choice

Which of the following best describes an accrued liability?

• A)A liability whose amount can only be estimated.
• B)A liability whose recording has not been triggered by an external event.
• C)A liability whose related expense is not recognized until the next period.
• D)A liability whose recording was triggered by an internal event.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold.

Cost Of Goods Manufactured

The total production cost of goods completed during a specific accounting period, including labor, materials, and overhead.

Automated

Refers to a method or process completed with minimal human intervention, often using digital or mechanical systems.