Which of the Following Most Likely Is an Example of an Accrued

question 33

Multiple Choice

Which of the following most likely is an example of an accrued liability?

• A) Interest payable
• B) Accounts payable
• C) Long-term debt
• D) Sales tax payable

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Definitions:

Allowance for Doubtful Accounts

An accounting provision made by a company to account for customers who may not be able to make required payments, affecting the accounts receivable balance.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Adjusting Entry

An accounting journal entry made at the end of a period to record any unrecognized income or expenses for that period, ensuring accuracy of the financial statements.

Maturity Value

The amount to be paid to the holder of a financial instrument at its maturity date.