Which One of the Following Is an Example of an Accrued

question 119

Multiple Choice

Which one of the following is an example of an accrued liability?

• A)Wages have been earned by employees,but have not been paid at the end of the period.
• B)Equipment that will benefit several periods has been purchased.
• C)An insurance policy that expires in a future period has been acquired.
• D)Supplies are purchased and used over several months.

---

Definitions:

IAS 41

The International Accounting Standard that deals with agriculture, outlining the accounting treatment for biological assets during and at the end of the agricultural activity.

Live Immature Fish

Young fish not yet reached maturity, often referenced in aquaculture or fisheries management.

Fair Value

The sum one would obtain from selling an asset or the cost to move a liability in a smooth exchange among market players on the date of valuation.

Biological Asset

A living animal or plant.