Which of the Following Describes an Accrued Liability

question 104

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.An accrued liability is recorded when an expense is incurred but not yet paid.